Inter & Co (INTR) Could Be 83% Undervalued On ACI Worldwide Payments Deal

Inter & Co (INTR) is back on investor radars after a special call on 20 August highlighted a new partnership between its Inter Pag acquiring unit and ACI Worldwide to modernize payments infrastructure.

See our latest analysis for Inter & Co.

At a latest share price of US$5.56, Inter & Co has seen a 3.15% 1 day share price return and a 5.10% 30 day share price return, but its year to date share price return is down 34.20% while the 1 year total shareholder return is down 31.83%. The 3 year total shareholder return remains positive at 25.77%, which suggests recent momentum has softened even as longer term holders still sit on a gain.

If this payments update has you thinking about where technology driven growth could come from next, it may be worth scanning 55 AI infrastructure stocks

After a sharp short term bounce yet a weak year so far, Inter & Co now asks a practical question of you: Is this the moment to lean into the reset, or does it pay to wait for a cheaper entry before the next move on fundamentals?

Most Popular Narrative: 83.3% Undervalued

The most followed narrative on Inter & Co values the stock at $33.30 per share against the last close of $5.56, which implies a large implied upside in that narrative and leans heavily on multi year execution of its 60/30/30 Plan.

At the beginning of 2023, Inter surprised those who did not follow the thesis in the market by disclosing its 60/30/30 Plan, which is a set of company guidelines for the year 2027. The company's goal is to reach 60 million customers, an efficiency index (expenses/revenues) of 30% and a return on equity (ROE) of 30%. In addition, a profit goal of R$ 5 billion and a goal of reaching R$ 100 billion in your credit portfolio were disclosed.

Read the complete narrative.

Want to see how Inter & Co moves from growth story to profit engine? The key is how revenue, margins and scale interact inside that 2027 target map.

Result: Fair Value of $33.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Inter & Co narrative still hinges on controlled credit costs and consistent execution, so any spike in cost of risk or slower efficiency gains could quickly challenge it.

Find out about the key risks to this Inter & Co narrative.

Next Steps

If this mix of optimism and caution around Inter & Co feels familiar, use it as a prompt to move quickly and check the underlying data for yourself. Then weigh up both sides by reviewing the 4 key rewards and 2 important warning signs

Looking for more investment ideas beyond Inter & Co?

If you stop with Inter & Co, you might miss other stocks that better match your goals. Give yourself options by scanning different angles across quality, value and income.

• Target potential mispricings by reviewing companies highlighted in the 49 high quality undervalued stocks.
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• Aim for dependable cash flows by reviewing companies in the 12 dividend fortresses.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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