XP Inc. downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded XP Inc. to Neutral from Buy with a price target of $23, down from $30. The analyst sees risks that interest rates in Brazil can remain higher for longer. While XP’s think valuation is “relatively undemanding,” there is downside risks to consensus estimates, the analyst tells investors in a research note. Goldman believes XP’s high exposure to the retail segment, which represented 75% of revenues in 2023, most of which come from equities, likely it makes it more sensitive to higher interest rates for longer.