XP - XP Inc.: Lots Of Competition And Little Potential For Appreciation

2024-06-21 15:06:23 ET

Summary

• XP sees competition advancing in all its businesses, and this is impacting its results.
• Despite presenting good financial indicators, competitors are also extremely efficient.
• Through a comparative analysis using the P/E multiple, the company has a downside of 15%.

Investment Thesis

I recommend selling XP Inc. ( XP ) stock. The company's take rate has been on a downward trend since 2018, and this is due to increased competition. In my view, the market has completely changed, and the company is no longer the main broker in the Brazilian financial market....

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