XP Inc. price target lowered to $16 from $19 at BofA

BofA lowered the firm’s price target on XP Inc. to $16 from $19 and keeps a Neutral rating on the shares after reducing its FY23 estimate to the bottom of management’s guidance range, which implies relatively flat earnings with FY22, reflecting limited revenue generation. A high-rate environment should continue to have a negative effect on capital markets activity, inflows, and revenue yield, the firm contends.