Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on XP (NASDAQ:XP) in the last three months.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 0 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for XP, presenting an average target of $24.0, a high estimate of $27.00, and a low estimate of $21.00. This current average has decreased by 20.53% from the previous average price target of $30.20.
Exploring Analyst Ratings: An In-Depth Overview
The analysis of recent analyst actions sheds light on the perception of XP by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Thiago Batista | UBS | Lowers | Neutral | $21.00 | $30.00 |
| Mario Pierry | B of A Securities | Lowers | Buy | $25.00 | $31.00 |
| 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 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to XP. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of XP compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of XP's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into XP's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.
Financial Insights: XP
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, XP showcased positive performance, achieving a revenue growth rate of 20.64% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: XP's net margin excels beyond industry benchmarks, reaching 63.43%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): XP's ROE excels beyond industry benchmarks, reaching 5.17%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.39%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: XP's debt-to-equity ratio surpasses industry norms, standing at 2.51. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Understanding the Relevance of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.