Overview
BofA Securities upgraded Popular, Inc. (NASDAQ: BPOP) from Neutral to Buy and raised its 12-month price target to $156.00 from $141.00. The brokerage framed the upgrade around confidence that Popular can sustain mid-teens return on tangible common equity (ROTCE), estimating roughly 14% for both 2026 and 2027.
Credit and earnings drivers
BofA pointed to better-than-expected credit quality as a central reason for the more constructive stance. The firm noted that credit metrics are normalizing, but said the pace of that normalization is not alarming. BofA links the improvement in asset performance in part to a recovery in economic activity across the markets where Popular operates.
On the earnings front, BofA increased its 2026 EPS projection for Popular by 3%, to $14.53 from $14.08. That revised estimate sits about 2% above consensus and is driven largely by stronger-than-anticipated net interest margin expansion reported in the fourth quarter of 2025.
Valuation and market context
Despite upward earnings-per-share revisions, BofA observed that Popular’s share multiple has lagged those improvements, implying potential for further price appreciation even though the stock is trading near its 52-week high. The brokerage’s assessment suggests a gap between fundamental earnings revisions and current market multiple compression.
Recent company results and outlook
Banco Popular released fourth-quarter 2025 results showing EPS of $3.53, a 16.5% beat versus analyst expectations of $3.03. The company recorded a slight revenue shortfall in the quarter, however, and has guided to growth in both loan volume and net interest income for 2026.
Pre-market trading activity and the company’s forward-looking commentary have drawn attention from analysts and investors, according to the reporting. The article notes that specific analyst upgrades or downgrades tied to those results were not listed.
Takeaway
BofA’s upgrade centers on sustainable ROTCE near mid-teens, improving credit performance, and a favorable net interest margin trajectory. The brokerage raised its price target and EPS estimate, while noting a possible re-rating opportunity if the market multiple moves in line with rising earnings.