XP Inc. Jumps 49.86% as Bolsonaro Election Win and UBS Buy Call Lift Brazilian Stocks

Insider Monkey··BRUS·Read original
3▲2 ▼0Impact / 5
Summary · why it matters

XP Inc. shares climbed 49.86 percent week-on-week to top US market gainers after Senator Flavio Bolsonaro's unexpected win in the first round of Brazil's general elections. Bolsonaro took 47 percent of Sunday's vote and will face leftist incumbent Luiz Inácio Lula da Silva, who received 45 percent, in an October 25 runoff, with markets favoring Bolsonaro's more pro-business stance. XP jumped to a fresh four-year high of $32.29 on Friday before closing up 6.67 percent at $32.22. UBS issued a buy recommendation on XP on Thursday with a $37 price target, a 14.8 percent upside from the latest close and a 48 percent increase from its previous $25 fair value assessment. The rally spread to other Brazilian equities including Banco Bradesco, PagSeguro Digital, and StoneCo Ltd. after JPMorgan upgraded Brazilian stocks to overweight, reversing its August downgrade to neutral, citing reduced political uncertainty and potential gains of 12 to 20 percent. XP is expected to report third-quarter results in the week of November 16 to 20, 2026, after second-quarter net income rose 5 percent to R$1.384 billion and net revenues grew 9 percent to R$4.884 billion year-on-year.

Impact on assets 5

Financials▲
Banco Bradesco SA ADR
BBD
▲ PositiveMonetaryrelevance

Rallied as part of the Brazilian equity rally after Bolsonaro's election win and JPMorgan's upgrade of Brazilian stocks to overweight, citing reduced political uncertainty.

StoneCo Ltd
STNE
▲ PositiveMonetaryrelevance

Rally spread to StoneCo as part of the broad Brazilian equity move after Bolsonaro's election win and JPMorgan's Brazil upgrade.

Consumer Discretionary▲
Industrials▲