Look to the Caribbean for an unsung bank play that offers a combination of upside potential and income, according to Bank of America. The firm upgraded shares of Puerto Rico-based Popular Inc. on Tuesday, lifting its rating to buy from hold. Analyst Brandon Berman also raised his price target to $156 from $141, implying upside of 14% from Monday’s close. Shares have surged to start 2026, up 13% thus far, and they’ve gained more than 40% in the past 12 months. “Yes, shares are trading at/near its 52-week high,” Berman wrote. “But also yes, we think there is further upside.” BPOP 1Y mountain Popular shares in the past 12 months Berman noted that credit quality has been getting a boost from a recovery in economic activity. In turn, management is expecting an improvement in net charge-offs – that is, the difference between gross charge-offs and recoveries of unpaid debt – in 2026. Other drivers behind that development include an improvement in loan portfolio composition and tighter underwriting standards in consumer loan categories. The analyst also said that the “correct” multiple for the stock hasn’t kept up with the company’s upward revisions on earnings per share. “We are raising our 2026 EPS estimate by 3% to $14.53 from $14.08,” Berman said, “driven by better-than-expected 4Q25 [net interest margin] expansion.” While Popular curre …
