XP Inc. upgraded to Buy from Neutral at UBS

UBS analyst Thiago Batista upgraded XP Inc. (XP) to Buy from Neutral with a price target of $16, down from $19. The firm believes the stock’s valuation has more than incorporated the tough Brazilian macro assumptions. UBS views XP’s recent strategy to expand into business-to-consumer positively, as thinks it could help XP control investment allocation and enhance the consumer experience. XP’s potential change in distribution may improve its net margin over the long-term, even though the company tends to be more cyclical, the analyst tells investors in a research note.