Update shared on 06 Nov 2025
Fair value Decreased 1.68%Narrative Update on Popular
Analysts have increased their price target for Popular by $12 to $152, citing improved outlooks for profit margins and future earnings performance.
Analyst Commentary
Following the recent price target increase, analysts have shared both optimistic and cautious assessments regarding Popular’s path forward.
Bullish Takeaways
- Bullish analysts point to the upgraded price target as a reflection of confidence in Popular’s ability to deliver sustained earnings growth in upcoming quarters.
- Improved profit margins are expected to support a higher valuation, supported by operational efficiency and successful cost management strategies.
- Long-term investment potential is strengthened by the company's strong balance sheet and established track record of executing on strategic initiatives.
- Analysts anticipate that favorable market trends and consistent demand will further boost Popular’s earnings outlook. This expectation supports the upward price target revision.
Bearish Takeaways
- Bearish analysts caution that the new price target may already reflect much of the near-term improvement, leaving less room for future outperformance.
- There is ongoing scrutiny on the company's ability to maintain elevated profit margins in a potentially volatile economic environment.
- Concerns remain about possible execution risks that could impact growth projections and operational targets.
- Analysts are watchful for any unexpected competitive or regulatory headwinds that could challenge the higher valuation.
What's in the News
- Popular, Inc. reported unaudited net charge-offs of $57.8 million for the third quarter ended September 30, 2025. This represents a slight decrease compared to the same period last year (Key Developments).
- The company completed a share repurchase of 587,823 shares, representing 0.87% of shares, for $71 million under a buyback announced in July 2025 (Key Developments).
- Another buyback tranche was completed, with 405,934 shares repurchased for $48.44 million. This contributes to a total of 5,069,313 shares, or 7.19%, bought back under an earlier program (Key Developments).
- The Board of Directors approved a quarterly cash dividend of $0.75 per share, payable October 1, 2025, to shareholders of record as of September 12, 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly from $145.56 to $143.11, reflecting updated forecasts.
- Discount Rate remains unchanged at 6.78%.
- Revenue Growth assumptions have been revised downward, from 10.72% to 9.93%.
- Net Profit Margin projection has risen modestly, increasing from 24.87% to 25.51%.
- Future P/E ratio estimate has declined, moving from 10.69x to 9.83x.
Disclaimer
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