Throughout the last three months, 4 analysts have evaluated XP (NASDAQ:XP), offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 0 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for XP, presenting an average target of $25.75, a high estimate of $29.00, and a low estimate of $23.00. A decline of 12.71% from the prior average price target is evident in the current average.
Investigating Analyst Ratings: An Elaborate Study
An in-depth analysis of recent analyst actions unveils how financial experts perceive XP. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Gabriel Gusan | Citigroup | Lowers | Buy | $27.00 | $29.00 |
| Tito Labarta | Goldman Sachs | Lowers | Neutral | $23.00 | $30.00 |
| Jorge Kuri | Morgan Stanley | Lowers | Equal-Weight | $24.00 | $31.00 |
| Gabriel Gusan | Citigroup | Raises | Buy | $29.00 | $28.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to XP. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of XP compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for XP's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of XP's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on XP analyst ratings.
About XP
XP Inc is a Cayman Island-based technology-driven financial services platform. It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment such as monitoring operations, making decisions on fund allocation, and evaluating the performance. It generates revenue through the Brokerage commission.
XP's Financial Performance
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: XP's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 20.64%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: XP's net margin is impressive, surpassing industry averages. With a net margin of 63.43%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): XP's ROE stands out, surpassing industry averages. With an impressive ROE of 5.17%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): XP's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.39%, the company may face hurdles in achieving optimal financial performance.
Debt Management: XP's debt-to-equity ratio stands notably higher than the industry average, reaching 2.51. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.