Look to the Caribbean for an unsung financial institution play that provides a mix of upside potential and earnings, in accordance with Financial institution of America. The agency upgraded shares of Puerto Rico-based Standard Inc. on Tuesday, lifting its ranking to purchase from maintain. Analyst Brandon Berman additionally raised his worth goal to $156 from $141, implying upside of 14% from Monday’s shut. Shares have surged to start out 2026, up 13% up to now, they usually’ve gained greater than 40% up to now 12 months. “Sure, shares are buying and selling at/close to its 52-week excessive,” Berman wrote. “But in addition sure, we expect there may be additional upside.” BPOP 1Y mountain Standard shares up to now 12 months Berman famous that credit score high quality has been getting a lift from a restoration in financial exercise. In flip, administration is anticipating an enchancment in internet charge-offs – that’s, the distinction between gross charge-offs and recoveries of unpaid debt – in 2026. Different drivers behind that improvement embody an enchancment in mortgage portfolio composition and tighter underwriting requirements in shopper mortgage classes. The analyst additionally mentioned that the “appropriate” a number of for the inventory hasn’t saved up with the corporate’s upward revisions on earnings per share. “We’re elevating our 2026 EPS estimate by 3% to $14.53 from $14.08,” Berman mentioned, “pushed by better-than-expected 4Q25 [net interest margin] enlargement.” Whereas Standard at present gives a dividend yield of two.1%, rewarding earnings traders who maintain shares, the financial institution additionally offers a beneficiant yield on its deposit merchandise. As of Tuesday, traders can decide up a 12-month certificates of deposit and accumulate an annual share yield of 4%, supplied they’ve a minimal deposit of $10,000. On its financial savings account providing, Standard touts an APY of three.9%. The inventory is roundly favored on Wall Road, with eight out of 10 analysts ranking it a purchase or sturdy purchase, per LSEG. The common worth goal requires about 8% upside. —CNBC’s Michael Bloom contributed reporting.