Home / Business and Economy / Puerto Rico Bank Stock Soars: BofA Sees 14% Upside
Puerto Rico Bank Stock Soars: BofA Sees 14% Upside
4 Feb
Summary
- Bank of America upgraded Popular Inc. to buy, targeting a 14% stock price increase.
- Economic recovery is boosting credit quality and improving loan portfolio composition.
- Popular Inc. offers a 2.1% dividend yield and competitive CD and savings account rates.
Bank of America analysts have upgraded Popular Inc., a Puerto Rico-based financial institution, to a 'buy' rating, with a new price target of $156. This upgrade suggests a potential 14% upside from its recent trading price. The stock has already experienced a strong start to 2026, gaining 13% year-to-date, and has seen over 40% growth in the past 12 months.
The bank's performance is being bolstered by a recovery in economic activity across the region. This has led to an anticipated improvement in net charge-offs for 2026. Management expects further positive impact from a better loan portfolio composition and stricter underwriting for consumer loans.
Analysts are also noting that the stock's valuation multiple has not kept pace with upward revisions in earnings per share estimates. The 2026 EPS estimate has been raised to $14.53, primarily due to better-than-expected net interest margin expansion in the fourth quarter of 2025.
