Banco Inter’s performance on the stock exchange has drawn the market’s attention. The digital bank based in Belo Horizonte has gained almost 100% this year, until the close of last Wednesday (25th), and 219% in the last 12 months, far surpassing the performance of the Ibovespa, which scores a modest 0.82% in the year.
After a drop of 4.4% in Wednesday’s session, the bank followed as the biggest rise on the Stock Exchange throughout this Thursday’s session (26) – it rose more than 9% and closed with a high of 4.6 %. The movement was against the Ibovespa, which retreated 1.73%. O UOL heard four analysts specializing in Inter to understand what explains the valuation and whether fintech shares are still a good option for investors. See below.
What explains the shooting on the day?
The market welcomed the announcement made by the bank last Wednesday night (25). Inter informed the release of credit card limits for 1.1 million account holders of its 13 million customer base.
R$3 billion will be distributed in additional credit of R$500 per customer over the next two weeks. This increases by 25% the amount of credit granted, which reaches the level of R$ 15 billion.
The announcement helps explain the recovery from the fall recorded on Wednesday (25).
“Today (Thursday) was a negative day for our stock index as a whole, the Ibovespa, but Banco Inter had good upward movements. It rose by more than 8%, largely due to the increase in credit for clients. gave a lot of excitement to the market,” says Victor Bueno, an analyst at Top gain.
Why has it gone up so much?
Banco Inter appreciated 219% in 1 year. In the period, the Ibovespa grew 19%.
In the assessment of Vergílio Lage, an expert at Valor Investimentos, the covid-19 pandemic favored the roles of companies linked to the technology sector, such as fintechs and e-commerce. That’s because, at home, people have discovered new services and ways to consume.
He considers that the fact that there is no exclusive environment for trading papers of technology on the stock exchange, as occurs in the United States with Nasdaq, explains Inter’s mismatch in relation to the Ibovespa.
“This situation has made technology companies, such as Banco Inter and Magazine Luiza, favored with the purchase of shares”, says Lage.
Nasdaq is the destination where the market expects to see Inter arrive in the coming months in search of raising funds to face its main competitor, the Nubank. “The company is going to join Nasdaq sooner or later,” says Bueno.
Is it worth investing in Inter?
The market is beginning to doubt Banco Inter’s profit-generating capacity, which could reduce the return margin for investors. In the first half, the company registered net income of BRL 18.2 million, which is considered a ceiling on the structure of the fintech currently.
In the assessment of Flávio de Oliveira, an analyst at Zahl Investimentos, the relationship between profitability and costs for expansion needs to be carefully monitored.
The explanation is that the fintechs grow by offering services at a low cost compared to to the banks traditional ones.
“The market prices the continuity of the bank’s growth. The big question, however, is: will this bank become a profitable structure, delivering such low costs to customers?”, says Oliveira.
Enrico Cozzolino, an analyst at Levante Ideias de Investimentos, points out that Inter’s expenses are growing in the same proportion as their appreciation on the Stock Exchange. This occurs, according to him, as part of the strategy of penetration in the digital market so as not to lose sight of the Nubank, which has attracted investors like Warren Buffet.
“The main point of risk is precisely the cake as a whole, which needs to grow. People in the market have this doubt about how much of this growth turns into a dividend, which in the financial industry is the return on capital injected (by the investor)”, he says Cozzolino.
The Top analyst gain does not remove the positive indication for Inter action. But it suggests the action at around R$ 70 as the top attainable for the time being, already considering a future listing on Nasdaq and possible small acquisitions.
“We cannot guarantee that investors cannot make money, because in the short term anything can happen. But it is becoming increasingly difficult to make money with Banco Inter,” says Bueno.