XP Should I Buy
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XP Inc is not a strong buy at the moment for a beginner investor with a long-term focus. While the company shows moderate financial growth and has a strong position in the Brazilian wealth management market, the lack of significant positive catalysts, weak technical indicators, and hedge fund selling suggest a cautious approach. Holding the stock and monitoring for better entry points or stronger signals is recommended.
The MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 42.174, and moving averages are converging, showing no clear trend. The stock is trading near its support level (S1: 18.132), but there is no strong bullish signal.
Analysts have highlighted XP's strong competitive position in Brazil's wealth management market.
Hedge funds are heavily selling the stock, with a 288.80% increase in selling activity last quarter. Technical indicators are weak, and there is no recent news to drive positive sentiment. Additionally, the stock's price target increase by BofA remains below the company's guidance.
In Q4 2025, XP Inc reported revenue growth of 11.22% YoY, net income growth of 9.79% YoY, and EPS growth of 11.93% YoY. These figures indicate moderate financial growth but do not suggest exceptional performance.
Jefferies initiated a Buy rating with a $22 price target, citing XP's strong position in Brazil's wealth management market. BofA raised its price target to $26 but maintained a Neutral rating, noting that the company's revenue growth estimates are still below guidance.
