XP Should I Buy
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XP Inc. is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong financial growth, positive analyst sentiment, and a dominant position in the Brazilian wealth management market. Despite some hedge fund selling, the company's fundamentals and recent performance support a long-term investment decision.
The stock's moving averages are bullish (SMA_5 > SMA_20 > SMA_200), suggesting an upward trend. However, the MACD is negatively expanding, and the RSI is neutral at 48.083. The stock is trading near its pivot point of 19.654, with key support at 18.772 and resistance at 20.536.
Strong Q4 2025 financial results with 10.2% revenue growth and 16% increase in client assets YoY.
New R$1 billion stock buyback program and dividend declarations.
Positive analyst ratings with price targets of $22 and $25, reflecting confidence in the company's competitive position.
Increasing active clients and payment volume growth.
Hedge funds are significantly increasing their selling activity (288.80% increase in the last quarter).
Mixed EPS and revenue estimate revisions in recent months.
Retail net inflows for the year decreased by 13% from 2024.
In Q4 2025, XP reported R$4.95 billion in revenue (10.2% YoY growth) and R$2.56 EPS. Client assets reached R$1.5 trillion, up 16% YoY, with strong net inflows and market appreciation. In Q3 2025, revenue grew 7.92% YoY, net income increased 11.27%, and EPS rose 13.30%, showcasing consistent financial growth.
Analysts are bullish on XP Inc., with Jefferies initiating coverage with a Buy rating and a $22 price target, citing a strong competitive position in Brazil's wealth management market. UBS also raised its price target to $25, maintaining a Buy rating.
