Popular Likely to Post Group-Leading Earnings Growth Through 2027, UBS Says

MT Newswires Live04-07

Popular (BPOP) is likely to record group-leading earnings growth through 2027, expected to support the stock, while the year-to-date ramp in two-year yields boost fixed-asset repricing upside, UBS said in a Tuesday research note.

The brokerage said it expects fiscal 2026 and 2027 EPS of $14.55 and $16.69, respectively, as an improving economic landscape in Puerto Rico provides additional support.

The company has the most sub-2% coupon bonds repricing through 2027, and the magnitude of this repricing is the top driver of the brokerage's earnings forecast, according to the note.

UBS said it expects Q1 net interest income and earnings upside to be driven by public fund repricing and expenses, while Q2 will be buoyed by bond repricing and balance sheet growth, analysts wrote.

The brokerage said it is assuming coverage of the stock with a buy rating and a price target of $160 per share compared with a neutral rating and a price target of $142 earlier.

Price: 140.59, Change: +0.69, Percent Change: +0.49

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