Earnings of Popular, Inc. (BPOP) are expected to take a hit from the Fed funds rate cut earlier this month. BPOP's balance sheet is positioned in a way that makes its net interest margin highly sensitive to interest rate movement. As a result, the recent 50bps rate cut is expected to squeeze margin, and consequently drag earnings this year. Earnings are also expected to be negatively affected by an increase in expenses related to business promotion and investments in people and technology. The December 2020 target price suggests a significant potential for capital