Is Inter & Co, Inc. (INTR) A Good Stock To Buy Now?

Is INTR a good stock to buy? We came across a bullish thesis on Inter & Co, Inc. on Emerging Value’s Substack. In this article, we will summarize the bulls’ thesis on INTR. Inter & Co, Inc.’s share was trading at $5.38 as of June 29th. INTR’s trailing and forward P/E were 8.86 and 9.79 respectively according to Yahoo Finance.

Inter&Co (INTR) is a Brazilian fintech and digital banking platform operating within one of the most attractive emerging market valuation environments, currently trading at a market capitalization of approximately 2.4 billion USD and a share price near 5.30 USD. The company has evolved from a traditional financial institution into a full-scale digital super app, offering banking accounts, credit cards, lending, savings, investing, insurance, and payments, while progressively embedding itself deeper into Brazil’s rapidly digitising financial ecosystem.

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With a client base of roughly 44 million users, Inter&Co continues to expand engagement through a highly personalised app experience that integrates Pix payments, credit, investments, and commerce features, positioning itself alongside other leading Brazilian fintech players such as Nu Holdings and Mercado Pago in a highly competitive but structurally growing market.

The company’s revenue model is primarily driven by net interest income, which accounts for around 77% of revenues, supported by fee income. A key structural shift in Inter&Co’s credit portfolio is its move toward secured lending, which now represents approximately 67% of total loans, including mortgages, home equity, payroll loans, and SME credit. This transition improves risk quality while supporting scalable growth.

The firm is also targeting improved profitability, with management aiming to raise return on equity from around 15.5% to 28% by 2029 through improved underwriting, operational efficiency, and leverage expansion. International expansion, particularly in the United States, is already underway with over 5 million users of its USD-based services, creating additional optionality for cross-border growth.

Despite competitive pressures and macroeconomic risks in Brazil’s credit cycle, Inter&Co continues to demonstrate strong growth momentum, with earnings expansion expectations of 40% in 2026 and 30% in 2027. At approximately 6.5x forward earnings and around 1.2x price-to-book, the valuation reflects a significant discount relative to its long-term profitability potential.

If the company successfully executes on its ROE expansion and credit penetration strategy, combined with continued user growth and international scaling, the business presents the potential for substantial re-rating and could plausibly deliver a multi-bagger outcome over the long term.

Previously, we covered a bullish thesis on SoFi Technologies, Inc. (SOFI) by Oliver | MMMT Wealth in May 2025, which highlighted the company’s accelerating profitability, expanding financial services platform, and valuation upside. SOFI’s stock price has appreciated by approximately 41.44% since our coverage. Emerging Value shares a similar view but emphasizes Inter & Co’s discounted valuation, improving profitability, and long-term growth potential.

Inter & Co, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held INTR at the end of the first quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of INTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.