Citi questions if Itau may reduce stake in XP Inc.

Noting that XP Inc. released a form SC 13G/A recently announcing the transfer of ownership of the XP stake between companies inside the Itau economic group, Citi wonders whether this could be “a leading sign” that Itau may reduce its stake in XP, but also notes that there has not been any sale of the total stake owned by the group and says “this movement could have other reasons behind it.” A selldown could put an end to the pending overhang, which could be positive, but it could also put a short-term cap to the recent rally in XP shares, which Citi notes are up by 42% in the last 30 days and 133% since the April lows. Citi maintains a Buy rating and $20 price target on XP.