RBC Capital on Wednesday raised its price target for Popular, Inc. to $141.00 from $137.00 and left its rating on the stock at Outperform. The broker noted several factors behind the move that it believes support further upside for the bank.
Shares of Popular traded at $130.60 at the time of the note, roughly 1% below the companys 52-week high of $133.09 and after delivering a roughly 31% total return over the past 12 months.
Central to RBC Capitals assessment is Populars capital position. The firm highlighted a common equity tier 1 ratio of 15.7%, saying that level of capital provides flexibility and optionality for growth initiatives while underpinning shareholder returns.
RBC also pointed to the banks shareholder-friendly track record. Management has been an active buyer of stock, and the firm said that the banks financial footing supports ongoing repurchases. In its outlook, RBC suggested Popular should be able to sustain its buyback program and could further lift its dividend through 2026.
RBC singled out the economic environment in Puerto Rico as a constructive element for Populars outlook. The note cited continued benefits from U.S. Government disaster relief spending and broader U.S. economic growth as drivers for the island economy. The firm further noted that Puerto Rico stands to gain from the on-shoring trend of putting manufacturing capacity back on U.S. soil, a development it views as positive for the banks regional franchise.
In related company news, Banco Popular Inc. posted solid fourth-quarter 2025 results, delivering earnings per share of $3.53 versus a consensus forecast of $3.03. Revenue for the quarter fell slightly short of expectations, but the earnings beat was characterized in the market as evidence of positive momentum and contributed to investor confidence in the companys financial health.
Those results arrived under close investor scrutiny, and RBC noted that analyst shops have not yet issued rating updates in response to the quarter. The firms bullish projection through 2026 reflects an expectation that Popular can maintain capital discipline while continuing to return capital to shareholders.
How this affects markets
- Bank investors may interpret the price-target increase and Outperform rating as confirmation of Populars capital strength and shareholder-return capacity.
- Regional banking and Puerto Rico-focused economic sectors are highlighted by RBCs note as potential beneficiaries of fiscal relief and on-shoring trends.
- Equity markets may take cues from the EPS beat, though the revenue shortfall and pending analyst reactions bear watching.