Here’s Why BofA Has a Hold Rating on XP Inc. (XP)

​XP Inc. (NASDAQ:XP) is 1 of the Undervalued Stocks with Biggest Upside Potential. On December 12, Mario Pierry from Bank of America Securities reiterated a Hold standing connected XP Inc. (NASDAQ:XP) with a $22 terms target.

​Pierry from Bank of America Securities noted that portion the CEO Thiago Maffra has outlined cardinal strategical priorities for 2026, the net for the twelvemonth are lone expected to turn by astir 8%. Maffra noted that the institution volition beryllium focusing connected standardizing Independent Financial Advisors’ services, processing alternate organisation channels, and expanding premium services to lower-tier customers. Despite these efforts, the net maturation is expected to beryllium constricted chiefly owed to constricted maturation successful gross output and an expected summation successful concern successful the B2C channel.

​Moreover, the expert expects that these efforts volition pb to accrued engagement and enhanced lawsuit experience, which volition assistance net successful the agelong term. However, successful the abbreviated term, net are expected to enactment constricted owed to elevated involvement rates and indispensable investments.

​That said, XP Inc. (NASDAQ:XP) grew its fiscal Q3 2025 gross by 17.04% year-over-year to $875.65 cardinal and surpassed estimates by $11.84 million. Moreover, the EPS of $0.46 besides came successful somewhat up of the statement by $0.01. The maturation was chiefly driven by a 12% year-over-year summation successful full lawsuit assets, which reached R$1.4 trillion successful Q3.

​XP Inc. (NASDAQ:XP) is simply a technology-driven fiscal services level that operates chiefly successful Brazil, offering a wide scope of low-fee products and services to some retail and organization clients. The company’s concern includes wealthiness management, securities brokerage, concern management, and firm and issuer services, specified arsenic M&A advisory.

While we admit the imaginable of XP arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.