XP Inc: Balanced Hold Rating Amid Revenue Growth and Market Challenges
Bank of America Securities analyst Mario Pierry maintains a Hold rating on XP Inc due to mixed financial performance. Despite revenue growth, challenges like EBT margin contraction and macroeconomic uncertainties persist. Pierry's balanced assessment reflects XP's market position amid pressures on equities and fixed income revenues. TipRanks rates Pierry as a 2-star analyst with a 0.6% average return. Another report also reiterates a Hold rating with a $21.50 price target.
Bank of America Securities analyst Mario Pierry has maintained their neutral stance on XP stock, giving a Hold rating on November 12.
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Mario Pierry has given his Hold rating due to a combination of factors influencing XP’s financial performance. The company’s net income for the third quarter of 2025 was in line with expectations, showing a modest increase compared to previous periods. However, while there was a notable growth in gross revenues, driven by corporate and issuer services, the retail segment, which constitutes a significant portion of total revenues, experienced slower growth due to pressures on equities and a decline in fixed income revenues.
Despite the positive aspects, such as a strong capital distribution program and decent revenue generation, XP faces challenges that justify the Hold rating. The contraction in EBT margin and the high-rate environment pose ongoing challenges to earnings growth. Additionally, continued investments in the B2C segment and macroeconomic uncertainties further contribute to the cautious outlook, making the Hold rating a balanced assessment of XP’s current market position.
According to TipRanks, Pierry is a 2-star analyst with an average return of 0.6% and a 45.16% success rate. Pierry covers the Financial sector, focusing on stocks such as Nu Holdings, Itau Unibanco, and XP.
In another report released on November 12, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $21.50 price target.
