
Popular (BPOP) Stock Forecast & Price Target
Popular (BPOP) Analyst Ratings
Bulls say
Popular is well-positioned within the financial holding company space with a diversified set of subsidiaries, including a leading bank in Puerto Rico and a strong presence in the continental United States. The recent upscaling of Popular's ROTCE target and positive outlook on NII and Fees further support our bullish stance on the stock. However, potential risks include a deteriorating macroeconomic backdrop, credit cost increases, and potential deposit competition.
Bears say
Popular is facing several headwinds including a lack of M&A activity in the US markets and slower loan growth, offsetting any potential benefits from fee income and a 5% loan growth in the last quarter. With a heavy reliance on government accounts and potential payoff headwinds in the mainland, Popular's outlook remains low-end for loan growth, while its PR economy benefits from in-sourcing trends, disaster recovery fund disbursement, and tourism. They have also resolved their largest problem credit but continue to face higher NCOs, making it difficult for growth at this time. Furthermore, their expansion of the capital plan and buyback authorization show a lack of investment prospects, and their estimated ROTCE of over 16% still falls short of industry averages, leading to the conclusion that Popular is not a wise investment at this time.
This aggregate rating is based on analysts' research of Popular and is not a guaranteed prediction by Public.com or investment advice.
Popular (BPOP) Analyst Forecast & Price Prediction
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