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

We came across a bullish thesis on Inter & Co, Inc. on X.com by thexcapitalist. In this article, we will summarize the bulls’ thesis on INTR. Inter & Co, Inc.'s share was trading at $8.95 as of September 16th. INTR’s trailing and forward P/E were 18.87 and 11.03 respectively according to Yahoo Finance.

Inter is the second-largest neo-bank in Brazil, building a strong presence in Latin America while expanding into the U.S. Its business model is anchored in lending, where users leave idle money in accounts to service debt. This structure enables Inter to channel deposits into loan growth, giving it one of the lowest funding costs in the industry. The company has further expanded its ecosystem with complementary offerings in investments, insurance brokerage, and shopping, enhancing customer stickiness and creating meaningful cross-monetization opportunities.

With a 5-year revenue CAGR of 57% and a return on equity of 14%, Inter has demonstrated its ability to scale profitably while maintaining efficient capital allocation. The company trades at a P/E ratio of 19 today, yet the market is significantly undervaluing its long-term potential, pricing it at just 8x projected 2027 earnings. This disconnect highlights a compelling investment case, as Inter’s proven ability to compound growth at scale positions it for continued success in high-growth financial markets.

The expansion into the U.S. adds an additional layer of optionality, giving Inter access to a large addressable market beyond Brazil. With its low-cost funding base, diversified product suite, and growing international footprint, the company is well-placed to drive sustained earnings growth. The current valuation leaves ample upside for investors, as Inter’s combination of strong fundamentals, high growth trajectory, and strategic market positioning makes the stock an attractive opportunity with favorable risk/reward dynamics.

Previously we covered a bullish thesis on Ally Financial Inc. (ALLY) by TSOH Investment Research in May 2025, which highlighted the company’s turnaround potential through improvements in auto lending, strategic realignment, and disciplined deposit management. The company's stock price has appreciated approximately by 33% since our coverage. The thesis still stands as Ally’s focus on core franchises continues to support long-term growth. thexcapitalist shares a similar approach but emphasizes Inter & Co’s low-cost funding, cross-monetization opportunities, and high growth trajectory in Latin America and the U.S.

Inter & Co, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held INTR at the end of the second quarter which was 20 in the previous quarter. While we acknowledge the potential of INTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.