Update shared on23 Sep 2025
Fair value Increased 0.91%Analysts have raised Popular’s price target to $138.12, citing strong capital ratios, improved economic conditions in Puerto Rico, and resilient profitability, while still viewing the bank’s valuation as underappreciated.
Analyst Commentary
- Bullish analysts cite Popular's strong capital position, particularly a 16.1% common equity tier 1 ratio, providing flexibility for growth and strategic opportunities.
- Upward revisions are supported by resilience in Puerto Rico's economy, benefiting from U.S. disaster relief funding and broader U.S. economic growth.
- Analysts highlight an improving operating and regulatory backdrop for mid-cap banks, with Popular's valuation seen as still underappreciated.
- Expectations for a rebound in commercial lending and back-half growth trends are supportive of the higher price targets.
- Profitability and risk metrics relative to peer banks, along with positive market and investment banking revenue outlooks, are leading to more optimistic assessments.
What's in the News
- Board approved a quarterly cash dividend of $0.75 per share, payable October 1, 2025, to shareholders of record on September 12, 2025.
- Quarterly dividend raised from $0.70 to $0.75 per share, starting with the fourth quarter of 2025, pending board approval.
- Net charge-offs for Q2 2025 totaled $42.2 million, down from $53.6 million a year ago.
- Company repurchased 1,265,660 shares (1.83%) for $127.57 million in the latest tranche; cumulative buybacks reached 4,792,649 shares (6.78%) for $467.2 million.
- Announced new share repurchase program authorizing up to $500 million in buybacks; added to Russell 1000 Growth-Defensive, Russell 1000 Defensive, and Russell 1000 Value-Defensive Indices.
Valuation Changes
Summary of Valuation Changes for Popular
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $136.88 to $138.12.
- The Future P/E for Popular remained effectively unchanged, moving only marginally from 10.21x to 10.30x.
- The Consensus Revenue Growth forecasts for Popular remained effectively unchanged, at 10.5% per annum.
Disclaimer
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