Look out for hidden banking initiatives in the Caribbean that offer a combination of upside potential and returns, according to Bank of America. The company upgraded its stake in Puerto Rico-based Popular Inc. on Tuesday, raising its rating from hold to buy. Analyst Brandon Berman also raised his price target to $156 from $141, suggesting a 14% upside from Monday’s closing price. The stock has soared since the start of 2026, up 13% so far and more than 40% in the past 12 months. “Yes, the stock is trading at or near its 52-week high,” Berman wrote. “But yes, we think there is further upside room.” BPOP 1Y Mountain Popular Stocks of the Past 12 Months Berman noted that credit quality is improving due to the recovery in economic activity. Meanwhile, management expects net charge-offs, or the difference between total charge-offs and recoveries on outstanding debt, to improve in 2026. This is due to improved loan portfolio composition and stricter underwriting standards in the consumer loan category. The analyst also said that the “appropriate” multiple for the stock price has not kept pace with the company’s upward revision to its earnings per share. “We are increasing our 2026 EPS forecast by 3% from $14.08 to $14.53, driven by a better-than-expected Q4 2025,” Berman said. [net interest margin] Popular currently offers a 2.1% dividend yield, which benefits income investors who own stocks, but the bank also offers generous yields on its deposit products. As of Tuesday, investors can receive a 12-month certificate of deposit with a minimum deposit of $10,000 and receive an annualized yield of 4%. In its savings account offering, Popular advertises an APY of 3.9%. The stock is widely liked on Wall Street, with 8 people rating it. Ten analysts rate it a “buy” or “strong buy,” according to LSEG, and the average price target calls for an upside of about 8%. CNBC’s Michael Bloom contributed to the report.
