omersukrugoksu
XP Inc. (NASDAQ:XP) shares slipped 1.2% in Thursday late morning trading after UBS downgraded the Brazilian investment brokerage to Neutral from Buy, owing to a challenging macroeconomic backdrop in Latin America’s largest economy.
Since the start of 2024, Brazil has experienced both significant currency devaluation and higher government security yields. That has negative implications for XP (XP), a provider of financial products and services in the country.
On valuation, XP (XP) is trading at 11.7 times 2024 estimates price-to-earnings, which analyst Thiago Batista said is not expensive versus international peers. The average 2024E price-to-earnings for a select group of international investment platforms, investment banks and asset managers stands at 16x.