Citi Upgraded Banco Bradesco (BBD) From Neutral to Buy, Also Raised the PT
Banco Bradesco Upgrade: Citi analyst Gustavo Schroden upgraded Banco Bradesco S.A. from Neutral to Buy, raising the price target from R$13.60 to R$19.50 due to improved return on investment and expected growth in net interest income by 2025.
Future Projections: The bank's sustainable return on equity (ROE) is projected to reach 16.5% by late 2026, driven by cost discipline and operating leverage, although some analysts suggest other AI stocks may offer better investment potential.
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Banco Bradesco Stock Rated as Undervalued
- Valuation Advantage: Banco Bradesco S.A. (NYSE:BBD) trades at a forward P/E ratio of approximately 6.7, significantly below the sector average of 11, indicating its potential as an undervalued stock with over 31% upside expected in the next 12 months.
- Rating Maintained: On June 8, TD Cowen reiterated a Hold rating on Banco Bradesco, without disclosing a price target; this rating follows the company's fiscal Q1 2026 earnings release, during which the stock has declined about 6.4% since the report.
- Loan Portfolio Expansion: Banco Bradesco's loan portfolio has grown to R$1.09 trillion, reflecting an 8.4% year-over-year increase, primarily driven by a strategic shift towards secured lending products like payroll-deductible loans and real estate, showcasing its proactive stance in the credit market.
- 2026 Outlook: Despite missing Q1 guidance, management has maintained its 2026 guidance, projecting loan growth of around 9.5% and risk-adjusted Net Interest Income growth of 12.5% for the full year, indicating confidence in future growth prospects.
Brazil's Stock Market Enjoyed a Stellar Year, but Future Gains Depend on Political Shifts.
- Brazilian Stock Performance: Brazilian stocks have seen a significant rally, with the iShares MSCI Brazil ETF gaining 38% in 2025, which compensates for losses in 2024.
- Long-term Trends: Historically, such rallies in Brazilian stocks do not tend to last long, and over the past five years, the ETF is down nearly 15%.
Bank Bradesco SA (BBD) Q2 2025 Earnings Call Highlights: Strong Income Growth Amid Economic ...
Bank Performance: Bank Bradesco SA reported a 28.6% increase in recurring net income year-on-year, driven by a 15.1% rise in total revenue and significant growth in fee income and insurance segments, despite facing challenges in maintaining growth in large corporate loans and pressure on net interest margins.
Strategic Focus: The bank is adapting to economic slowdowns by enhancing its digital services for the low-income segment and managing risks in the SME sector through new credit models, while also aiming to improve profitability and maintain cautious guidance on provisions.
Citi Upgraded Banco Bradesco (BBD) From Neutral to Buy, Also Raised the PT
Banco Bradesco Upgrade: Citi analyst Gustavo Schroden upgraded Banco Bradesco S.A. from Neutral to Buy, raising the price target from R$13.60 to R$19.50 due to improved return on investment and expected growth in net interest income by 2025.
Future Projections: The bank's sustainable return on equity (ROE) is projected to reach 16.5% by late 2026, driven by cost discipline and operating leverage, although some analysts suggest other AI stocks may offer better investment potential.
Bank Bradesco SA (BBD) Q1 2025 Earnings Call Highlights: Strong Income Growth Amidst Economic ...
Earnings Performance: Bank Bradesco SA reported a recurring net income of nearly $5.9 billion, reflecting over 39% year-on-year growth and 8.6% quarter-on-quarter growth, with total revenue reaching $32 billion driven by increases in net interest income and insurance revenue.
Growth Challenges: The bank faces challenges in maintaining profitability due to high costs in the mass retail segment and macroeconomic risks such as inflation and interest rates, while it aims to improve returns on equity through digital transformation and optimizing service costs.
Banco Bradesco downgraded to Sell from Buy at Goldman Sachs
Goldman Sachs Downgrade: Goldman Sachs has downgraded Banco Bradesco from Buy to Sell, lowering the price target to $2 due to concerns over the bank's profitability and return on equity remaining below its cost until at least 2027.
Capital Generation Concerns: The bank's muted profitability is expected to limit its organic capital generation, with shareholders' equity showing stability over the past year.
Banco Bradesco Stock Rated as Undervalued
- Valuation Advantage: Banco Bradesco S.A. (NYSE:BBD) trades at a forward P/E ratio of approximately 6.7, significantly below the sector average of 11, indicating its potential as an undervalued stock with over 31% upside expected in the next 12 months.
- Rating Maintained: On June 8, TD Cowen reiterated a Hold rating on Banco Bradesco, without disclosing a price target; this rating follows the company's fiscal Q1 2026 earnings release, during which the stock has declined about 6.4% since the report.
- Loan Portfolio Expansion: Banco Bradesco's loan portfolio has grown to R$1.09 trillion, reflecting an 8.4% year-over-year increase, primarily driven by a strategic shift towards secured lending products like payroll-deductible loans and real estate, showcasing its proactive stance in the credit market.
- 2026 Outlook: Despite missing Q1 guidance, management has maintained its 2026 guidance, projecting loan growth of around 9.5% and risk-adjusted Net Interest Income growth of 12.5% for the full year, indicating confidence in future growth prospects.
Brazil's Stock Market Enjoyed a Stellar Year, but Future Gains Depend on Political Shifts.
- Brazilian Stock Performance: Brazilian stocks have seen a significant rally, with the iShares MSCI Brazil ETF gaining 38% in 2025, which compensates for losses in 2024.
- Long-term Trends: Historically, such rallies in Brazilian stocks do not tend to last long, and over the past five years, the ETF is down nearly 15%.
Bank Bradesco SA (BBD) Q2 2025 Earnings Call Highlights: Strong Income Growth Amid Economic ...
Bank Performance: Bank Bradesco SA reported a 28.6% increase in recurring net income year-on-year, driven by a 15.1% rise in total revenue and significant growth in fee income and insurance segments, despite facing challenges in maintaining growth in large corporate loans and pressure on net interest margins.
Strategic Focus: The bank is adapting to economic slowdowns by enhancing its digital services for the low-income segment and managing risks in the SME sector through new credit models, while also aiming to improve profitability and maintain cautious guidance on provisions.
Citi Upgraded Banco Bradesco (BBD) From Neutral to Buy, Also Raised the PT
Banco Bradesco Upgrade: Citi analyst Gustavo Schroden upgraded Banco Bradesco S.A. from Neutral to Buy, raising the price target from R$13.60 to R$19.50 due to improved return on investment and expected growth in net interest income by 2025.
Future Projections: The bank's sustainable return on equity (ROE) is projected to reach 16.5% by late 2026, driven by cost discipline and operating leverage, although some analysts suggest other AI stocks may offer better investment potential.
Bank Bradesco SA (BBD) Q1 2025 Earnings Call Highlights: Strong Income Growth Amidst Economic ...
Earnings Performance: Bank Bradesco SA reported a recurring net income of nearly $5.9 billion, reflecting over 39% year-on-year growth and 8.6% quarter-on-quarter growth, with total revenue reaching $32 billion driven by increases in net interest income and insurance revenue.
Growth Challenges: The bank faces challenges in maintaining profitability due to high costs in the mass retail segment and macroeconomic risks such as inflation and interest rates, while it aims to improve returns on equity through digital transformation and optimizing service costs.
Banco Bradesco downgraded to Sell from Buy at Goldman Sachs
Goldman Sachs Downgrade: Goldman Sachs has downgraded Banco Bradesco from Buy to Sell, lowering the price target to $2 due to concerns over the bank's profitability and return on equity remaining below its cost until at least 2027.
Capital Generation Concerns: The bank's muted profitability is expected to limit its organic capital generation, with shareholders' equity showing stability over the past year.
