Inter & Co "Reiterate Buy: De-rating is not justified by fundamentals" (Buy)

研报英文原文证据摘录

Inter & Co "Reiterate Buy: De-rating is not justified by fundamentals" (Buy)

Global Research

30 June 2026ab

Inter & Co Equities

BrazilReiterate Buy: De-rating is not justified by

fundamentals Diversified Financial

12-month rating Buy *

12m price target US$9.40De-rating not supported by underlying trends

The recent share price correction appears disproportionate to underlying

fundamentals. Since the 1Q26, Inter’s stock has declined ~31%, significantly Price (30 Jun 2026) US$5.43

underperforming the Brazilian peers, likely driven largely by concerns around asset RIC: INTR.O BBG: INTR US

quality. However, revisions to consensus expectations have been relatively limited,

with only modest downward adjustments to ROAE in the near term and upgrades in Trading data and key metrics

outer years, while UBS estimates remain slightly below consensus. The banks is 52-wk range US$10.21-5.24

currently trading at 1.0x PBV and 6.3x PE (12 months forward) - the last time the Market cap. US$2.38b

bank reached similar valuation was in the end of 2024, when the yield of 10 years Shares o/s 439m (COM)

government bonds reached ~15% (vs ~14% currently), EPS growth was at similar Free float 51%

level, while profitability expectation was at ~15% (vs currently at 17%) - the only Avg. daily volume ('000) 5,721

variable that is weaker now than in December 2024 is the valuation of Nu (~17x PE Avg. daily value (m) US$37

12 months forward previously ~13.6x current). Common s/h equity (12/26E) US$11.6b

P/BV (12/26E) 1.1x

Capital surplus offers incremental ROAE upside Tier 1 ratio 12%

Inter’s strong ROAE expansion in recent years has been driven by a combination of

improving operating profitability and increase in the balance sheet leverage, with EPS (UBS, diluted) (BRL)

UBS Cons.