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

We came across a bullish thesis on Inter & Co, Inc. on Value investing subreddit by MilkshakeBoy78. In this article, we will summarize the bulls’ thesis on INTR. Inter & Co, Inc.'s share was trading at $9.82 as of January 29th. INTR’s trailing and forward P/E were 18.61 and 11.56 respectively according to Yahoo Finance.

Inter & Co operates an integrated financial and commerce ecosystem across Brazil and the United States, spanning banking, payments, investments, insurance, and digital retail. The bank offers checking accounts, cards, deposits, lending, FX services, and a global account, while also managing securities distribution and asset management. Its insurance arm covers life, property, auto, warranties, and pensions, complemented by a digital marketplace that drives engagement and monetization. Despite having fewer customers than Nubank (40 million vs. 60 million) and lower margins, Inter trades at a far lower valuation, raising the question of whether NU’s 5.5x premium is justified.

For Inter, average revenue per active customer and deeper cross-selling are critical for driving top-line expansion without sacrificing efficiency. With cost-to-serve normalizing and scale benefits compounding, profitability can accelerate faster than customer growth. The bull case centers on disciplined execution that could support a re-rating toward 3–4x book value, especially as the company pursues its “60-30-30” plan—60 million customers, 30% efficiency ratio, and 30% ROE by 2027. These targets, even if achieved later than expected, remain key drivers of valuation as the ADR tends to move in line with operational improvements.

Efficiency gains and better monetization continue to close the gap toward these long-term goals, supporting solid performance through 2025. The bear case acknowledges ongoing heavy investment, funding pressures, a high-rate Brazilian credit environment, and fierce competition. Even so, Inter may not need to fully deliver the 60-30-30 plan to justify a 1.5x book re-rating—implying 50% upside by 2028 if current execution persists.

Previously we covered a bullish thesis on SoFi Technologies, Inc. by Oliver | MMMT Wealth in May 2025, which highlighted its consistent revenue beats, rapid membership growth, and strengthening profitability. The company's stock price has appreciated approximately by 89.42% since our coverage. This is because the thesis played out as expected. The thesis still stands as fundamentals continue improving. MilkshakeBoy78 shares a similar view but emphasizes Inter & Co’s scale-driven efficiency and valuation upside.

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.