© Reuters.
On Thursday, Citi adjusted its stance on Inter & Co Inc. (NASDAQ: INTR), shifting the rating from Buy to Neutral. Alongside the downgrade, the firm also set a new price target of $6.00, reduced from the previous $6.30. The decision follows a review of the company’s recent financial activities, including its fourth-quarter results and a follow-on offering.
The revised estimates by the firm have led to an increase in Inter & Co’s earnings projections for the years 2024 and 2025, with expected rises of 2% and 5%, respectively. These projections are influenced by the proceeds from their follow-on offering. Despite the improved earnings forecast, the price target has been lowered due to a reassessment of the stock’s valuation.
Inter & Co has demonstrated a strong operational performance, with an acceleration in its loan book and an enhancement in profitability. The return on equity (ROE) for the company is anticipated to hit 13% in 2024. The stock has shown resilience, bouncing back from the initial dip caused by the follow-on offering.
The current market pricing of Inter & Co’s stock is deemed appropriate by Citi, with a 1.3 times price-to-book value (P/BV) ratio forecasted for 2024, which aligns with the company’s optimistic outlook for the year. However, the firm suggests that any potential for a re-rating of the stock is contingent on the continuation of profitability improvements into 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
