XP Inc. (XP-Q)

We reiterate XP, a provider of financial and advisory services to clients primarily in Brazil, as a TOP PICK.  It trades at 12x earnings, 2.7x book and supports a 22% ROE.  We like that recently reported earnings showed strong cash flow, allowing for cash reserves to grow while shares are bought back.  The dividend is backed by a payout ratio of 40% of cashflow.  We recommend trailing up the stop (from $13.00) to $16.00, looking to achieve $23.50 -- upside potential of 20%.  Yield 3.2%

XP provides financial services and advisory services to clients primarily in Brazil.  Recently reported earnings showed an all time high in net income - growing 18% over the year.  Cash reserves are growing on strong cash flows, allowing shares to be bought back.  It trades at 10x earnings, 2.2x book and supports a ROE of 22% (impressive for a financial company).  Its dividend is backed by a payout ratio of 40% of cash flow.  We recommend setting a stop-loss at $13, looking to achieve $22 -- upside potential of 31%.  Yield 3.8%