Keefe raises EVERTEC stock price target to $44, cites strong 1Q

Published 08/05/2025, 12:22
Keefe raises EVERTEC stock price target to $44, cites strong 1Q

On Thursday, Keefe, Bruyette & Woods analyst Vasundhara Govi increased the price target on EVERTEC (NYSE:EVTC) to $44.00, up from the previous target of $42.00. The firm reaffirmed its Outperform rating on the company’s shares. Govi highlighted EVERTEC’s strong execution and a solid start to the year, following a robust first-quarter performance.

In a recent conference call, the management of EVERTEC discussed the company’s strong underlying growth drivers observed in the first quarter. InvestingPro analysis reveals several positive indicators, including a 13-year track record of consistent dividend payments and strong liquidity with current assets exceeding short-term obligations. Although some of these drivers, such as pricing benefits and one-time revenues, may not continue throughout the year, consumer spending has remained robust in April. Additionally, trends in Latin America (LatAm) have shown signs of improvement.

Govi noted that EVERTEC reported a very strong first quarter and is well positioned to meet or exceed expectations. This is attributed to the company’s continued good execution and stable consumer spending in Puerto Rico and Latin America, with these trends extending into April. The company’s outlook also takes into account some macroeconomic variability, should trends worsen.

The analyst expressed a positive view on EVERTEC’s positioning within its end markets. Govi believes that the company is capable of achieving valuation expansion due to its strong market presence and consistent performance. This optimism about EVERTEC’s future prospects is reflected in the raised price target, signaling confidence in the company’s ability to sustain its growth trajectory.

In other recent news, Evertec Inc . has reported impressive financial results for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an adjusted earnings per share (EPS) of $0.87, exceeding the anticipated $0.79, while revenue climbed to $228.8 million, surpassing expectations of $217.97 million. This marks an 11.4% increase in revenue year-over-year, attributed to growth in Latin America and technological advancements. Evertec’s adjusted EBITDA also rose by 14% to $89.4 million, reflecting enhanced operational efficiency. The company’s liquidity remains robust, with a position of $460 million. In terms of analyst perspectives, Evertec has not been subject to any recent upgrades or downgrades, but the company’s outlook remains positive. The firm continues to focus on mergers and acquisitions as part of its growth strategy, with a projected revenue range for 2025 between $903 million and $911 million.

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