Inter & Co (INTR) Soars 5.22% on UBS Upgrade and Strong Q2 Earnings

Inter & Co (INTR) rose 5.22% on Tuesday, marking its second consecutive day of gains, with a cumulative rise of 7.74% over the past two sessions. The stock reached an intraday high of $9.14, its highest since September 2025, reflecting renewed investor confidence.

The rally follows a UBS Group upgrade, which raised its price target to $9.20 from $8.10, reiterating a “Buy” rating. This aligns with Inter & Co’s Q2 2025 earnings report, where it exceeded EPS estimates by $0.01 at $0.13 per share, despite revenue falling short of expectations. Strong profitability metrics, including a 12.55% net margin and 11.85% ROE, underscore operational efficiency.

Strategic expansion into the U.S. and Latin America is driving long-term optimism. As Brazil’s second-largest neo-bank, the company is leveraging its low-cost digital model to enter competitive markets. However, analysts caution that margin pressures and regulatory hurdles could emerge as expansion accelerates.

Institutional investor activity has surged, with SBI Securities and Summit Securities significantly increasing holdings in Q2 2025. Hedge funds now own 22.90% of shares, signaling strong backing for the company’s growth narrative. This institutional support has bolstered liquidity and reinforced market sentiment.

Financial metrics highlight a conservative capital structure, with a debt-to-equity ratio of 0.06 and adequate liquidity. A PEG ratio of 0.43 suggests the stock may be undervalued relative to its growth potential, though a beta of 1.13 indicates higher volatility compared to the broader market.

Risks remain, including credit quality concerns tied to low-cost lending and fierce competition in the neo-banking sector. Analysts project $0.48 EPS for the current fiscal year, but revenue growth faces challenges. MarketBeat’s average “Hold” rating and a median price target of $6.77 reflect these uncertainties, despite bullish projections from UBS.

Inter & Co’s trajectory hinges on its ability to navigate macroeconomic risks while scaling operations. With a focus on U.S. expansion and institutional confidence, the stock’s performance could remain resilient if growth targets are met, though volatility is likely to persist in a beta-driven environment.