XP Inc. price target lowered to $28 from $30 at Citi

Citi lowered the firm’s price target on XP Inc. to $28 from $30 but keeps a Buy rating on the shares. The analyst notes that while inflows and trading activity are taking longer to reignite, the firm continues to like XP;s mid-term prospects. The firm further cites XP now distributing dividends, which is a “strong signal” about its cash generation capacity and future capital needs, the analyst adds. The reduced price target reflects a higher risk-free rate, but the stock trades at a “still-attractive” valuation of 11.4-times expected forward earnings, Citi notes.