Morgan Stanley Starts AGI Inc (AGBK) at Overweight

Morgan Stanley analyst Jorge Kuri initiates coverage on AGI Inc (NYSE: AGBK) with a Overweight rating and a price target of $21.00.

The analyst comments: "Initiating coverage on AGBK with an Overweight rating and year-end 2026 price target of US$21 per share, for 100% potential upside. Our residual income–based price target implies the shares will trade at 14.7x 2026e and 10.4x 2027e P/E. AGBK now trades at 7.3x 2026e and 5.2x 2027e P/E. Our rating is relative to the MSCI Brazil index. Agibank is a sales-driven financial services company primarily focused on serving retirees of Brazil’s National Social Security Institute (INSS).

We are bullish on Agibank given its compelling mix of strong earnings growth, high quality returns, and attractive valuation. We model robust net income expansion through 2028 (29% 3-year CAGR), with ROE in the 26 to 28% range — among the highest in our coverage — driven by solid loan growth and attractive unit economics. AGBK trades at a meaningful discount to peers on 2027 P/E (40% discount) and at a steeper discount on a growth-adjusted basis (peer-low PEG, 70% discount). In our view, the market underappreciates the durability of earnings and structural growth embedded in the franchise."

For an analyst ratings summary and ratings history on AGI Inc click here. For more ratings news on AGI Inc click here.

Shares of AGI Inc closed at $10.50 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Home Depot (HD) call put ratio 1.5 calls to 1 put with a focus on September 330 puts into quarter results
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy