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Analysts have raised Popular's fair value estimate from $138.13 to $141.75, citing a strong capital position, improving growth forecasts, and beneficial economic conditions as key factors.

Analyst Commentary

Recent price target increases and ratings upgrades reflect ongoing optimism from the analyst community regarding Popular's financial strength and growth prospects. The following key themes have emerged from the latest rounds of analyst research and commentary:

• Bullish analysts have cited robust capital ratios, including a 16.1% common equity tier 1 ratio. This gives Popular enhanced flexibility to pursue growth opportunities and strategic initiatives.
• Raised price targets point to positive outlooks on the company's ability to execute and deliver value. Notable increases demonstrate confidence in future performance.
• The ongoing benefit from disaster relief spending and favorable U.S. economic dynamics is expected to support continued growth for Popular, especially in its home market.
• Maintained positive ratings underscore conviction in both Popular's earnings power and its capacity to navigate macroeconomic headwinds.

• Some analysts remain cautious, noting that while economic tailwinds support growth, any shift in U.S. policy or slowdown in federal spending could introduce risks to Popular’s outlook.
• Execution risk persists as the bank seeks to expand, particularly if competitive pressures increase or if capital deployment is not timed optimally.
• Higher valuation levels from recent target hikes may limit upside if growth or capital strength expectations are not fully met in coming quarters.

What's in the News

• Popular, Inc. announced a quarterly cash dividend of $0.75 per share, payable on October 1, 2025, to shareholders of record as of September 12, 2025 (Key Developments).
• From April 1 to July 15, 2025, Popular repurchased 1,265,660 shares worth $127.57 million, completing a total repurchase of 4,792,649 shares under a buyback program announced in July 2024 (Key Developments).
• The Board authorized a new share repurchase program on July 16, 2025, allowing up to $500 million in buybacks (Key Developments).
• Popular, Inc. reported net charge-offs of $42.2 million for the quarter ended June 30, 2025, down from $53.6 million a year ago (Key Developments).
• The company increased its quarterly dividend from $0.70 to $0.75 per share, starting in the fourth quarter of 2025, subject to board approval (Key Developments).

Valuation Changes

• Fair Value Estimate has increased from $138.13 to $141.75, reflecting a modest uptick in estimated intrinsic value.
• Discount Rate remains unchanged at 6.78%, indicating a consistent approach to risk and capital cost assumptions.
• Revenue Growth Forecast has risen slightly from 10.53% to 10.66%, suggesting moderate improvement in expected top-line expansion.
• Net Profit Margin projection has edged up from 24.61% to 24.83%, signaling incremental gains in operational efficiency.
• Future P/E Ratio forecast has increased marginally from 10.30x to 10.44x, pointing to somewhat higher valuation expectations based on projected earnings.