Keefe Bruyette raises Popular stock price target to $125

Published 24/04/2025, 13:16
Keefe Bruyette raises Popular stock price target to $125

On Thursday, Keefe, Bruyette & Woods, a notable financial services research firm, increased its price target for Popular, Inc. (NASDAQ:BPOP) shares to $125 from the previous target of $122. The firm has maintained its Outperform rating on the stock.

In a recent statement, Keefe, Bruyette & Woods expressed a positive outlook on Popular, Inc., following the company’s recent performance. The analyst from the firm, Kelly Motta, highlighted the company’s impressive quarter, stating, "Couldn’t Have Asked for a Better Quarter." The stock’s performance on Thursday was in line with the firm’s expectations, with a 4% increase in the 2026 earnings estimate post-quarter.

The firm’s confidence in Popular, Inc. has grown due to the company’s consistent profitability improvements, which are driven by growth in pre-provision net revenue (PPNR). Trading at a P/E ratio of 11.04 and maintaining dividend payments for 11 consecutive years, the company demonstrates strong financial health. The analyst also noted that the credit trends for Popular, Inc. are better than anticipated. This has allowed the company to record a provision for credit losses that exceeded expectations while also increasing their reserves.

Keefe, Bruyette & Woods has adjusted its estimates upward for Popular, Inc., citing these positive developments. The raised price target to $125 reflects the firm’s reiteration of the Outperform rating for the stock.

Popular, Inc. has not publicly responded to the revised price target and rating affirmation. The new price target suggests that Keefe, Bruyette & Woods sees potential for continued growth in the stock’s value, based on the company’s recent financial performance and future prospects.

In other recent news, Popular Inc . reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $2.56, compared to the anticipated $2.19. However, the company’s revenue came in slightly below expectations at $757.66 million, against the forecasted $765.38 million. Despite this revenue shortfall, Popular Inc. experienced significant growth in net interest income, which increased by $15 million, and saw a rise in both loan and deposit balances. The company revised its loan growth guidance to the lower end of its previous range, reflecting a cautious approach amid economic uncertainties. Analysts have noted the company’s strong performance, with Piper Sandler and RBC acknowledging the positive developments. Additionally, Popular Inc. has been actively repurchasing shares, with $122 million in buybacks during the quarter. The company aims to achieve a 12% return on tangible common equity (RoTCE) by year-end, with a long-term goal of reaching 14%. Popular Inc. continues to maintain a robust position in Puerto Rico’s financial services market, supported by its diversified business mix and strong balance sheet.

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