Goldman Sachs has shifted its stance on XP Inc. from Neutral to Buy, accompanied by a revised price target of $23. The move stems from XP’s demonstrated ability to maintain operational resilience amid volatile macroeconomic conditions. Goldman sees XP’s proactive cost management and lean structure as key catalysts poised to unlock long-term value.
📌 XP’s Q1 2025 performance showcased a 20% year-over-year jump in net income, reaching BRL 1.236 billion. The company also delivered a solid 21% return on equity, reflecting efficient capital use and earnings strength. These results, paired with a BRL 1 billion share repurchase program, point to strong capital allocation discipline.
📌 On the dividend side, XP has maintained a shareholder-friendly stance. Its latest dividend payment was $0.65 per share, offering a yield near 3.36%. With a payout ratio of 43.16%, the company balances rewarding investors while preserving capital for expansion. This financial prudence adds to the appeal for income-focused portfolios.
📌 As the Brazilian digital brokerage continues expanding its market share while staying profitable, the upgrade signals a pivotal moment for investors looking for growth potential combined with disciplined returns.