Update shared on 04 Nov 2025
Fair value Increased 1.20%Analysts have raised their price target for XP Inc. from $22.92 to $23.20. This change reflects updated valuation timelines and relatively stable earnings expectations, despite modest revisions to revenue growth forecasts.
Analyst Commentary
Bullish Takeaways- Bullish analysts have increased price targets for XP, citing the company’s stable earnings outlook despite recent revenue growth estimate reductions.
- Valuation models have been updated to reflect a longer-term perspective and now shift the horizon to year-end 2026, which supports higher target prices.
- XP shares are viewed as attractively valued. Long-term fundamentals are expected to remain resilient even amid near-term macroeconomic pressures.
- Analysts believe that stable profit forecasts point to strong underlying business execution. This provides confidence in XP’s ability to navigate challenging environments.
- Some analysts have flagged downside risks, including a 90-day catalyst watch, due to concerns over potential weakness in Q3 results.
- Persistent high interest rates and lower-than-expected market activity are expected to weigh on near-term growth and could limit upside surprise potential.
- The modest revenue forecast adjustments reflect caution about XP’s ability to accelerate top-line expansion in the current economic climate.
What's in the News
- XP Inc. will hold a Board Meeting on August 13, 2025, to consider and approve the unaudited interim condensed consolidated financial statements as of June 30, 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $22.92 to $23.20, reflecting an updated valuation horizon and the latest forecasts.
- Discount Rate remains unchanged at 12.32%, indicating stable assumptions in risk and capital cost outlooks.
- Revenue Growth projections have edged down marginally to 12.60% from 12.62%. This suggests a slightly more cautious stance on top-line expansion.
- Net Profit Margin expectation is virtually flat, moving from 28.26% to 28.26%. This highlights minimal revisions in profitability assumptions.
- Future P/E ratio has increased fractionally from 12.94x to 12.97x. This is in line with updated fair value and earnings trajectory estimates.
Disclaimer
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