XP Inc. Q1: Strong Results Support Rating Upgrade
Summary
- I upgraded XP Inc. from 'Hold' to 'Buy' due to strong fixed income revenue growth and effective expense control, signaling resilience.
- The Company achieved record net income, driven by robust net inflows and operational efficiency, and announced a new share buyback program.
- The valuation is attractive with a PEG of 0.74x, implying 35% upside potential and further supporting my buy rating.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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