Caribbean Cash Flow

Popular Inc $BPOP ( ▼ 0.04% ) is getting fresh attention from Bank of America $BAC ( ▲ 1.71% ), which upgraded the Puerto Rico-based lender to Buy from Hold.

Analyst Brandon Berman also raised his price target to $156 from $141, citing improving fundamentals and valuation support.

The stock has already had a strong start to the year, but Berman says that does not close the door on further gains. In his view, the market has yet to fully reflect Popular’s earnings trajectory.

Bank of America points to improving credit quality as a key driver.

A recovery in economic activity is helping reduce stress across the loan book, Berman says, while tighter underwriting standards and better portfolio mix are expected to lift net charge-offs in 2026.

The analyst also raised his 2026 earnings estimate, driven by stronger-than-expected net interest margin expansion in the fourth quarter. He argues that the stock’s multiple has lagged behind upward revisions to earnings power.

Popular also stands out for income-focused investors. The bank offers a dividend yield of about 2.1%, alongside competitive deposit rates that management uses to attract and retain customers.

With improving credit, rising earnings expectations, and a valuation Bank of America still sees as reasonable, the firm says this under-the-radar bank offers a rare mix of growth and income.