Benchmark raised its price target for Popular Inc. to $216 from $214 while maintaining a buy rating, citing an improved revenue outlook for the Puerto Rico-focused bank. The stock last traded at $169.75, giving it a price-to-earnings ratio of 11.51 and a year-to-date gain of 37.8%. Analysts at the firm also adjusted earnings projections for the coming fiscal years.
Benchmark trimmed its 2026 earnings estimate by $0.16 to $16.18 per share, attributing the change to updated assumptions on income taxes for that year. For 2027, the firm raised its forecast by $0.16 to $17.30 per share. The adjustments followed a broader reassessment of tax assumptions across the forecast horizon.
Net interest income is projected to grow between 8% and 9% this year, while expenses are expected to expand by 2% to 3%, according to Benchmark. The firm’s outlook also suggests a cautious stance on return on assets expansion for fiscal 2027, aligning with consensus estimates.
Other analysts have also revised their targets for Popular Inc. Truist Securities lifted its target to $197, citing strong quarterly results and positive guidance. Keefe, Bruyette & Woods raised its target to $207, highlighting confidence in the bank’s expanded capital plan and improved net interest income outlook. RBC Capital increased its target to $181, pointing to Popular’s robust capital position, which includes a Common Equity Tier 1 ratio of 16.1%. Wells Fargo maintained an above-average rating with a $200 target.
The updates come as Popular continues to benefit from its focus on Puerto Rico and the U.S. mainland, with analysts emphasizing its solid financial metrics and growth trajectory.
