Popular stock price target raised to $142 from $133 at Citi on strong NII

Published 24/07/2025, 11:12
Popular stock price target raised to $142 from $133 at Citi on strong NII

Investing.com - Citi has raised its price target on Popular, Inc. (NASDAQ:BPOP) to $142.00 from $133.00 while maintaining a Buy rating on the stock. The bank’s stock, currently trading at $115.59, has demonstrated strong momentum with a 24.69% year-to-date return and is approaching its 52-week high of $118.54.

The price target increase follows better-than-expected core net interest income (NII) results from Popular and the absence of an interest rate cut in the first half of 2025, which supported a significant guidance increase for the full year 2025. According to InvestingPro data, the company maintains a healthy financial profile with a "GOOD" overall health score of 2.61.

Citi believes net interest margin expansion is likely to continue, with the asset side driving near-term upside until the Federal Reserve implements its next rate cut. The combination of securities rolling over and a well-managed deposit base positions the bank near the high end of its updated 2025 NII growth guidance.

Credit performance represents another strong driver for Citi’s positive earnings outlook, with core results trending near historic lows in terms of net credit headwinds to Popular. Citi indicates this trend appears sustainable given the current economic outlook.

The firm has adjusted its estimates higher, driven by both an improved NII outlook and lower loan loss provision expense compared to previous expectations, which are the two main factors behind the increased earnings per share outlook and the $9 price target increase.

In other recent news, Popular Inc . reported impressive financial results for the second quarter of 2025, surpassing earnings expectations. The company’s earnings per share (EPS) reached $3.09, which is a notable 22.62% above the anticipated $2.52. This positive earnings surprise was accompanied by strong revenue performance. The results have been well-received in the market. Additionally, the earnings call highlighted the company’s solid financial standing. Analysts have taken note of these developments, but there have been no recent upgrades or downgrades reported from major firms. Investors may find these financial results encouraging as they reflect the company’s current operational strength. These recent developments are significant for stakeholders and potential investors monitoring Popular Inc.’s performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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