Inter & Co, Inc. (INTR): A Bull Case Theory

Core Thesis - Inter & Co, Inc. is positioned as a compelling investment opportunity due to its strong growth potential and favorable market dynamics, particularly in the Latin American and U.S. markets [1][4]. Company Overview - Inter & Co, Inc. is the second-largest neo-bank in Brazil, focusing on lending and expanding its presence in Latin America and the U.S. [2]. - The company's business model allows it to channel deposits into loan growth, resulting in one of the lowest funding costs in the industry [2]. Financial Performance - Inter has achieved a 5-year revenue CAGR of 57% and a return on equity of 14%, indicating its ability to scale profitably [3]. - The current P/E ratio is 19, but the market undervalues its long-term potential, pricing it at just 8x projected 2027 earnings [3]. Market Positioning - The expansion into the U.S. market provides Inter with access to a larger addressable market, enhancing its growth prospects [4]. - The combination of low-cost funding, a diversified product suite, and a growing international footprint positions the company for sustained earnings growth [4]. Investment Case - The current valuation suggests significant upside potential for investors, supported by strong fundamentals and a high growth trajectory [4]. - Inter's strategic market positioning and cross-monetization opportunities further enhance its attractiveness as an investment [5].