Barclays analyst Jared Shaw has elevated the price target for Popular (BPOP, Financial) from $115 to $125, maintaining an Overweight rating on the stock. This optimistic adjustment comes as the bank demonstrates a robust beginning to the year, highlighted by notable increases in net interest income. Furthermore, the analyst notes that credit conditions are showing signs of enhancement, contributing to the positive outlook for the company. Investors are advised to consider these factors, as Popular continues to perform strongly in the current financial landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Popular Inc (BPOP, Financial) is $113.67 with a high estimate of $130.00 and a low estimate of $100.00. The average target implies an upside of 19.91% from the current price of $94.79. More detailed estimate data can be found on the Popular Inc (BPOP) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Popular Inc's (BPOP, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Popular Inc (BPOP, Financial) in one year is $84.15, suggesting a downside of 11.22% from the current price of $94.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Popular Inc (BPOP) Summary page.
BPOP Key Business Developments
Release Date: April 23, 2025
- Net Interest Income: Increased by $15 million.
- Net Interest Margin: Expanded by 5 basis points to 3.4%.
- Loan Balances: Increased by $146 million.
- Deposit Balances: Grew by $935 million.
- Share Repurchase: $122 million repurchased at an average price of $96 per share.
- Tangible Book Value Per Share: Increased by nearly $4 to approximately $72.
- Noninterest Income: $152 million, a decrease of $13 million compared to Q4.
- Total Operating Expenses: $471 million, an increase of $3 million from last quarter.
- Effective Tax Rate: 20%, flat with Q4.
- Return on Tangible Common Equity: 11.4%, an increase of 14 basis points from last quarter.
- Net Charge-Offs: $49 million, decreased from $67 million in the prior quarter.
- Allowance for Credit Losses: Increased by $16 million to $762 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Net interest income increased by $15 million, with a net interest margin expansion of 5 basis points to 3.4%, driven by lower deposit costs.
- Loan balances increased by $146 million, primarily in the commercial and construction segments.
- Deposit balances grew by $935 million, with contributions from both banks.
- Credit quality improved, with lower net charge-offs and early delinquencies.
- Tangible book value per share increased by nearly $4 to approximately $72, driven by quarterly net income and lower unrealized losses in the investment portfolio.
Negative Points
- Noninterest income decreased by $13 million compared to Q4, below the low end of 2025 quarterly guidance.
- Operating expenses increased by $3 million, primarily due to higher personnel costs.
- The economic outlook remains uncertain due to tariff volatility and recession concerns.
- Loan growth guidance was adjusted to the lower end of the 3% to 5% range due to economic uncertainty.
- The cost of deposits in the US remains high due to competitive pressures and a high proportion of time deposits.
