Inter & Co (NasdaqGS:INTR) is in focus after formally opening its state-licensed U.S. branch in Miami, Florida, giving the Brazilian rooted digital bank a regulated foothold to serve U.S. and cross-border clients directly.

Despite the Miami branch opening and recent regulatory milestones, Inter & Co’s share price has come under pressure, with the stock down 31.19% over the past 90 days and 34.20% year to date, while the 3 year total shareholder return of 77.40% still reflects stronger longer term gains.

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So with Inter & Co’s shares under pressure despite its Miami launch, are investors looking at an undervalued cross border banking platform, or is the recent U.S. expansion already fully reflected in the price?

Most Popular Narrative: 83.3% Undervalued

According to the most followed narrative, Inter & Co’s fair value sits at $33.30 per share versus the last close of $5.56, a wide gap that frames the recent share price weakness in a very different light.

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.

Curious how a single plan links customer growth, efficiency and profitability into that higher fair value estimate? The narrative leans heavily on monetisation gains and margin expansion assumptions that go well beyond today’s reported numbers.

Result: Fair Value of $33.30 (UNDERVALUED)

However, investors still need to weigh execution and credit risks, as tougher loan quality or slower progress toward the 60/30/30 plan could quickly undermine that thesis.

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Next Steps

With sentiment split between recent share price pressure and an optimistic fair value, it makes sense to move quickly and weigh both sides yourself by checking the 4 key rewards and 2 important warning signs

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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.