Inter&Co resumed with a Buy at Citi

Citi resumed coverage of Inter&Co with a Buy rating and $6.80 price target. The firm resumed coverage of the SMID cap space for Brazilian banks after a period of under review. With investor sentiment deteriorated, investors should focus on “resilient balance sheets and bottom-up improvements despite the challenging macro,” the analyst tells investors in a research note. With a better portfolio mix, product repricing, lower funding cost, and controlled provisions, Inter&Co should continue to improve return on equity while at an attractive valuation, Citi contends.