Key Takeaways
- • Benchmark raised its price target on Popular, Inc. (NASDAQ: BPOP) to $214 from $201, maintaining a Buy rating following the company's second-quarter 2026 earnings report.
- • The firm increased its fiscal 2026 earnings estimate by $0.98 to $16.34 per share and raised its fiscal 2027 estimate by $0.38 to $17.14 per share, reflecting confidence in earnings trajectory.
- • The new $214 price target is based on 12.5 times forward earnings, implying approximately 25% upside from prior levels and positioning Popular as an attractive banking sector play with lower deposit cost pressures than mainland competitors.
- • Popular delivered Q2 2026 earnings per share of $4.35, significantly beating consensus expectations of $3.71, though revenue of $873.96 million missed forecasts of $882.22 million.
- • Benchmark projects Q2 2026 as the peak profitability quarter for the year, with a 1.41% return on assets, and notes Popular's exposure to Puerto Rico banking with favorable structural advantages relative to U.S. mainland institutions.
Summary
Benchmark raised its price target on Popular, Inc. to $214 from $201 on August 31, 2026, while maintaining a Buy rating on the Puerto Rico-based financial institution. The $13 increase reflects elevated confidence in the company's earnings trajectory following its second-quarter 2026 results, which demonstrated strong operational execution and earnings upside despite a modest revenue miss.
The analyst firm increased its fiscal 2026 earnings-per-share estimate by $0.98 to $16.34 and raised its fiscal 2027 EPS estimate by $0.38 to $17.14, signaling confidence in sustained earnings growth. The new $214 price target is derived from a 12.5 times multiple applied to Benchmark's forward earnings estimate. At current trading levels, the stock trades at a P/E ratio of 12.63 and demonstrates a PEG ratio of 0.31, metrics that suggest relative attractiveness on a forward-looking basis, though certain valuation analysis suggests caution relative to intrinsic value estimates.
Popular's second-quarter 2026 performance delivered earnings per share of $4.35, meaningfully exceeding Wall Street consensus of $3.71—a significant beat that drove the analyst upgrade. Revenue came in at $873.96 million, slightly below the forecasted $882.22 million, though the earnings outperformance was driven by strong returns on assets and increased fee income generation. Benchmark projects Q2 2026 as the year's highest-profitability quarter, with a return on assets of 1.41%, compared to the company's current ROA of 1.25%.
The analyst highlighted Popular's strategic positioning within the banking sector, emphasizing the company's exposure to Puerto Rico operations as a structural advantage. Unlike mainland U.S. banks facing headwinds from rising deposit costs, Popular benefits from a more favorable deposit cost environment, enhancing net interest margin dynamics. The stock has delivered robust performance, returning 53% over the past year and currently trading just 1% below its 52-week high, reflecting sustained investor confidence in the franchise's earnings power and capital management discipline.
The analyst firm increased its fiscal 2026 earnings-per-share estimate by $0.98 to $16.34 and raised its fiscal 2027 EPS estimate by $0.38 to $17.14, signaling confidence in sustained earnings growth. The new $214 price target is derived from a 12.5 times multiple applied to Benchmark's forward earnings estimate. At current trading levels, the stock trades at a P/E ratio of 12.63 and demonstrates a PEG ratio of 0.31, metrics that suggest relative attractiveness on a forward-looking basis, though certain valuation analysis suggests caution relative to intrinsic value estimates.
Popular's second-quarter 2026 performance delivered earnings per share of $4.35, meaningfully exceeding Wall Street consensus of $3.71—a significant beat that drove the analyst upgrade. Revenue came in at $873.96 million, slightly below the forecasted $882.22 million, though the earnings outperformance was driven by strong returns on assets and increased fee income generation. Benchmark projects Q2 2026 as the year's highest-profitability quarter, with a return on assets of 1.41%, compared to the company's current ROA of 1.25%.
The analyst highlighted Popular's strategic positioning within the banking sector, emphasizing the company's exposure to Puerto Rico operations as a structural advantage. Unlike mainland U.S. banks facing headwinds from rising deposit costs, Popular benefits from a more favorable deposit cost environment, enhancing net interest margin dynamics. The stock has delivered robust performance, returning 53% over the past year and currently trading just 1% below its 52-week high, reflecting sustained investor confidence in the franchise's earnings power and capital management discipline.
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