XP Inc., a Brazil-based investment management company, announced that it has struck a deal to buy financial advisory company Riza M&A to enhance its corporate client services and offerings.
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XP (XP) has not disclosed the terms of the deal. However, the company said that the deal is in-line with its strategy “to reinforce its Capital Markets ecosystem.” Riza’s partners, Marco Gonçalves and André Quaresma, will join XP’s M&A team as per the terms of the deal.
Pedro Mesquita, head of XP Investment Banking said, “There is a huge potential for development in the Brazilian Capital Market.” He added, “A talented and experienced M&A team completes the suite of products and services we can offer to our corporate clients. It is our commitment and focus to deliver the best value proposition to our clients.” (See XP stock analysis on TipRanks).
On Oct. 16, Merrill Lynch analyst Mario Pierry said that the company’s business model looked more resilient and fared better-than-expected during the coronavirus pandemic. Pierry noted that the company’s assets under custody have been growing in the past few months.
The analyst, therefore, upgraded the stock to Hold from Sell and maintained a price target of $50 (20.9% upside potential). Shares have increased 7.4% year-to-date.
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