XP Inc. (NASDAQ:XP) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Mario Pierry from Bank of America Securities reiterated a Hold rating on XP Inc. (NASDAQ:XP) with a $22 price target.
Pierry from Bank of America Securities noted that while the CEO Thiago Maffra has outlined key strategic priorities for 2026, the earnings for the year are only expected to grow by around 8%. Maffra noted that the company will be focusing on standardizing Independent Financial Advisors’ services, developing alternative distribution channels, and expanding premium services to lower-tier customers. Despite these efforts, the earnings growth is expected to be limited mainly due to limited growth in revenue yield and an expected increase in investment in the B2C channel.
Moreover, the analyst expects that these efforts will lead to increased engagement and enhanced customer experience, which will help earnings in the long term. However, in the short term, earnings are expected to stay limited due to elevated interest rates and essential investments.
That said, XP Inc. (NASDAQ:XP) grew its fiscal Q3 2025 revenue by 17.04% year-over-year to $875.65 million and surpassed estimates by $11.84 million. Moreover, the EPS of $0.46 also came in slightly ahead of the consensus by $0.01. The growth was mainly driven by a 12% year-over-year increase in total client assets, which reached R$1.4 trillion in Q3.
XP Inc. (NASDAQ:XP) is a technology-driven financial services platform that operates primarily in Brazil, offering a wide range of low-fee products and services to both retail and institutional clients. The company’s business includes wealth management, securities brokerage, investment management, and corporate and issuer services, such as M&A advisory.
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Disclosure: None. This article is originally published at Insider Monkey.
