Shares of XP Inc. (XP.O) declined sharply today, hitting a 20-day low as investors reacted to mixed earnings results. Despite reporting a gross revenue of R$4.9 billion for Q3 2025, a 9% year-over-year increase, the stock faced pressure after revenues of $855.57 million fell slightly short of estimates. The technical breakdown suggests increased bearish momentum, raising concerns among traders.
The company's solid performance metrics, including a 12% growth in total client assets and a 33% increase in its loan portfolio, did not suffice to maintain investor confidence. XP's earnings per share matched expectations at $0.45, but the slight revenue miss overshadowed the positive operational efficiency indicators, such as a gross margin improvement to 68.2%.
With a Zacks Rank #2 (Buy) and a year-to-date stock increase of approximately 57.5%, XP Inc. remains in a favorable industry context. However, the current technical signals indicate caution as the stock navigates through this recent downturn.
Wall Street analysts forecast XP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XP is 24.33 USD with a low forecast of 22.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast XP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XP is 24.33 USD with a low forecast of 22.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 20.090
Low
22.00
Averages
24.33
High
26.00
Current: 20.090
Low
22.00
Averages
24.33
High
26.00
Jefferies
NULL -> Buy
initiated
$22
2026-01-19
Reason
Jefferies
Price Target
$22
AI Analysis
2026-01-19
initiated
NULL -> Buy
Reason
Jefferies initiated coverage of XP Inc. with a Buy rating and $22 price target. XP is a broker democratizing investments in Brazil, the analyst tells investors in a research note. The firm says the company has a "very strong" competitive position in Brazil's wealth management market. XP's return on equity is 26% and it has a "dominant" position in distribution channel, contends Jefferies.
UBS
Thiago Batista
Buy
maintain
$23 -> $25
2025-12-16
Reason
UBS
Thiago Batista
Price Target
$23 -> $25
2025-12-16
maintain
Buy
Reason
UBS analyst Thiago Batista raised the firm's price target on XP Inc. to $25 from $23 and keeps a Buy rating on the shares.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for XP
Unlock Now
UBS
Thiago Batista
Buy
downgrade
$24 -> $23
2025-10-16
Reason
UBS
Thiago Batista
Price Target
$24 -> $23
2025-10-16
downgrade
Buy
Reason
UBS analyst Thiago Batista lowered the firm's price target on XP Inc. to $23 from $24 and keeps a Buy rating on the shares.
BofA
Neutral
maintain
$19 -> $22
2025-09-25
Reason
BofA
Price Target
$19 -> $22
2025-09-25
maintain
Neutral
Reason
BofA raised the firm's price target on XP Inc. to $22 from $19 and keeps a Neutral rating on the shares. The firm reduced revenue growth estimates for XP, while noting that its earnings forecasts remain relatively unchanged. The firm's increased target reflects rolling its valuation basis over to year-end 2026 from 2025, the analyst noted.
About XP
XP Inc. is a Cayman Islands-based holding company. The Company owns technological platforms for investments, financial services and education, in addition to media and content platforms, including brands, such as XP, Rico, Clear, Infomoney, XPeed and IM+. It distributes a range of financial products and services, such as financial education and digital content platform, financial advisory services and open financial product platform. Xpeed is a financial education platform in Brazil, which offers courses, MBAs and learning tools, as well as a range of digital content. It advises and supports its customers in a range of activities related to the financial universe, such as advisory services for institutional clients, private banking for high income clients, international financial services, structuring and issuance of financial products for corporate clients and issuers. It offers an open financial product platform to its clients, encompassing both proprietary and partnership products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
