Inter & Co (INTR) is in focus after opening a U.S. banking branch in Miami. The move is aimed at serving international clients and pursuing lower funding costs within its expanding digital banking ecosystem.
See our latest analysis for Inter & Co.
Inter & Co’s recent Miami branch opening comes at a time when its share price has eased back, with the 90 day share price return down 30.14% and the year to date share price return down 35.27%. The three year total shareholder return of 76.71% points to a much stronger longer term outcome.
If Inter & Co’s expansion has you thinking about where else growth stories might emerge, it could be worth checking out 20 top founder-led companies
With Inter & Co shares down sharply over the past year despite revenue and net income growth, and trading below some analyst value estimates, the key question is whether this reset signals an underappreciated growth story or a stock where the market already recognises what comes next.
Most Popular Narrative: 83.6% Undervalued
Inter & Co’s last close at $5.47 sits well below the fair value of $33.30 implied by the most followed narrative, which frames the stock as heavily discounted relative to its long term profit and customer goals.
At the beginning of 2023, Inter surprised those who did not follow the thesis in the market by disclosing its 60/30/30 Plan, which is a set of company guidelines for the year 2027. The company's goal is to reach 60 million customers, an efficiency index (expenses/revenues) of 30% and a return on equity (ROE) of 30%. In addition, a profit goal of R$ 5 billion and a goal of reaching R$ 100 billion in your credit portfolio were disclosed.
Read the complete narrative. Read the complete narrative.
Curious what sits behind that $33.30 fair value for Inter & Co? The narrative leans on ambitious profit, margin and loan book assumptions that could materially reshape earnings power if they play out.
Result: Fair Value of $33.30 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Inter & Co narrative could be challenged if the cost of risk rises faster than expected or if competition pressures fee income and loan growth assumptions.
Find out about the key risks to this Inter & Co narrative.
Next Steps
With mixed sentiment around Inter & Co’s valuation and growth path, now is a good time to review the key data points yourself, weigh both the potential upsides and the areas of concern, and see how they line up with the 4 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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