Opinions
The Panic-Proof Portfolio (Stockchase Research)
XP Inc.
XP-Q
TOP PICK
Sep 23, 2025
$19.500
Stock price when the opinion was issued
Financial Services
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TOP PICK
Stockchase Research Editor: Michael O'Reilly
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%
(Analysts’ price target is $22.32)
Financial Services
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%
(Analysts’ price target is $23.55)