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ubs upgrades xp inc stock to buy despite lowered price target
UBS has upgraded XP Inc.'s stock rating from Neutral to Buy, while lowering the price target to $16 from $19, citing the company's valuation as reflecting Brazil's tough macroeconomic conditions. Despite a 50% decline in shares over the past year, XP Inc. shows strong financial health and is trading at historically low valuations. The company is also navigating challenges from potential negative reports and increasing lawsuits, while initiating a share repurchase program worth R$1.0 billion to bolster investor confidence.
UBS analyst Thiago Batista upgraded Itau Unibanco stock from Neutral to Buy, lowering the price target to R$41.00. The bank reported a strong Q3 with a 20% year-over-year increase in recurring results, while maintaining a robust loan portfolio despite macroeconomic challenges. Investments in technology have enhanced efficiency, although growth in the acquiring business has slowed.
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