Global financial services provider JPMorgan Chase & Co. (JPM) has agreed to acquire a 40% stake in Brazil’s C6 Bank. The financial details of the deal remained undisclosed.
C6 is a full-service digital bank catering to over seven million customers through its digital platform. Its offerings include multi-currency checking and savings accounts, debit and credit cards, travel and loyalty programs, as well as investment and lending products. The acquisition accelerates C6’s growth and also complements JPMorgan’s international consumer strategy.
Sanoke Viswanathan, CEO of International Consumer for JPMorgan Chase said, “We have admired C6 Bank, its management team, and their strategy for some time. With an impressive platform and product suite, they are well-positioned to sustain their growth trajectory and build a strong franchise.” (See JPMorgan stock chart on TipRanks)
Marcelo Kalim, CEO and co-founder of C6 Bank commented, “With JPMorgan’s support, we will invest and scale our business in a way that continues to provide Brazilian customers with best-in-class digital banking products to help them accomplish their goals.”
Brazil is currently one of the largest banking markets globally, with over 60% of banking transactions done digitally.
Earlier this month, Wells Fargo analyst Mike Mayo reiterated a Buy rating on the stock and increased the price target to $200 (29.6% upside potential) from $195.
Meanwhile, BMO Capital analyst James Fotheringham has a Hold rating on the stock and recently decreased the price target to $139 (9.9% downside potential) from $140. The analyst believes JPMorgan could be a winner for long-term stockholders owing to its digital investments, earnings diversification, solid balance sheet, and top-notch management talent.
Based on 11 Buys, 4 Holds, and 1 Sell, consensus on the Street is a Moderate Buy. The average JPMorgan price target of $172.92 implies 12% upside potential. Shares are up 66% over the past year.
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