B3 (B3SA3) or XP: What to buy, according to BTG (Image: REUTERS/Amanda Perobelli)
With better than expected results in the second quarter, both B3 as for XP attract the eyes of BTG Pactual. Despite this, the bank's preference goes to XP.
According to analysts Eduardo Rosman, Ricardo Buchpiguel, Thiago Paura and Bruno Lima, both actions showed the diversification of their business models in the 2T24. However, because of the micro, they are increasingly convinced that XP has improved as a company.
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“The company is focused on the right KPIs and improving capital allocation”, they explain. Furthermore, analysts highlighted that, with the “boom” of debt issuances in Brazil and its distribution power, XP has become a type of “fixed income exchange”.
Regarding B3, BTG shows that share volumes have worsened in recent weeks, although it is not known whether this indicates a trend. Despite the companies being “interest rate theses”, analysts believe that XP delivered a greater micro evolution and that it has not yet been priced in by the market.
Therefore, the bank maintains a purchase recommendation and preference for XP, with a target price of R$24, compared to a neutral recommendation for B3, with a target price of R$14.50.
“All in all, the weakness in XP and B3 shares over the last 4-5 trading sessions suggests that the weaker macro is much more important than the micro at this time,” they report.
However, although they do not know when the environment will improve, BTG believes that the companies' ability to generate value over time will boost the shares.