XP - XP upgraded at Credit Suisse on better prospects ahead of monetary easing
2023-07-20 11:49:06 ET
- Credit Suisse upgraded XP ( NASDAQ: XP ) to Neutral from Underperform due to the monetary easing cycle ahead and better capital markets outlook.
- Shares +3% in midday trade.
- "Notwithstanding remaining structural long-term challenges of the investment platform business, a more vigorous capital markets cycle and higher risk appetite could play in favor of XP in the short/medium run," said analyst Marcelo Telles.
- "The upcoming easing cycle and increased risk appetite should drive stronger revenues and create room for operational leverage, following significant cost controls observed in Q1," he added.
- Credit Suisse raised its GAAP earnings forecast for XP ( XP ) by ~8% for 2023/2024 to R$3.9B/R$4.8B.
- Price target was raised to $26 from $15, implying 9.2% potential upside to XP's last close.
- XP upgraded at BofA as earnings set to benefit from lower rates .
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XP upgraded at Credit Suisse on better prospects ahead of monetary easing