XP Inc. just upgraded at JPMorgan, here’s why

JPMorgan analyst Yuri Fernandes upgraded XP Inc. to Overweight from Neutral with a price target of $30, up from $27. The firm shifted its preferences within Brazilian capital market players by upgrading XP to Overweight and downgrading B3 to Neutral. While both companies should benefit from lower rates and higher volume of riskier assets, XP’s revenues are more leveraged to market rebound than B3’s, the analyst tells investors in a research note. The firm says XP’s take rate will benefit both from asset class mix, as well as fees on a per-segment basis.