Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Banco Bradesco (BBD) stock, we need to analyze both technical and fundamental factors.

Fundamental Analysis:

Banco Bradesco has shown strong financial performance, with a 37% increase in Q4 net income to BRL5.4 billion, driven by growth in its loan portfolio and digital transformation efforts. However, Goldman Sachs recently downgraded the stock to Sell, citing concerns over profitability and return on equity, which is expected to remain below the cost of equity until at least 2027. This downgrade could impact investor sentiment and short-term performance.

Technical Analysis:

The stock is currently trading at $2, with a bearish trend indicated by technical indicators. The RSI is at 41, suggesting the stock is not oversold, and the MACD is slightly negative, indicating downward momentum.

Analyst Sentiment:

Analyst ratings are mixed, with HSBC upgrading the stock to Buy with a $2.80 price target, while Goldman Sachs downgraded it to Sell with a $2 target. The average price target is $2.30, slightly above the current price.

Conclusion:

Given the mixed analyst sentiment, profitability concerns, and recent downgrade, it may be prudent to sell BBD stock at its current price of $2. However, if you’re confident in the bank’s long-term growth potential, holding the stock could be a viable strategy.

Banco Bradesco (BBD) stock is predicted to reach $2.10 in 2025, supported by strong Q4 earnings and HSBC's upgrade to Strong Buy. However, upside may be limited due to Goldman Sachs' downgrade citing profitability concerns.

The S1 support level for BBD Stock is $1.95 ,The R1 resistant level for BBD Stock is $2.13.

As of the end of day on 2025-03-14, the price of BBD Stock was $2.15.

The target price for BBD Stock according to analyst rating is 2.40, with the highest price target at 2.80 and the lowest at 2.00. Analysts have a Hold rating on BBD Stock overall.

The market cap of BBD is $34.2B.

BBD may not be overvalued based on its current metrics. Its EV/EBITDA of 8.69 and PS ratio of 0.83 suggest reasonable valuation. The PB ratio of 0.94 indicates undervaluation relative to book value. A high dividend yield of 11.75% adds appeal. Recent strong Q4 results with a 37% net income increase and loan growth support its value. While Goldman Sachs is cautious, HSBC's upgrade to Strong Buy suggests potential. Overall, BBD appears fairly valued with upside potential.

Banco Bradesco SA, formerly Banco Brasileiro de Descontos SA, is a Brazil-based public company which engages in the Banking Services Industry Group. The Company operates as a wide-ranging commercial bank in terms of total assets, credit operations and the volume of deposits and funding. The Company offers a range of banking and financial products and services, in Brazil and abroad, for individuals, and key national and international companies and institutions. The Company's products and services cover banking and non-banking operations, such as: loans and advances, deposits, issuing credit cards, consortium, insurance, capitalization, leasing, payment collection and processing, supplementary pension plans, asset management and securities intermediation and brokerage services.

Banco Bradesco (BBD) is expected to reach a price of $4.50 to $6.00 by 2030, driven by disciplined growth and digital transformation. The stock's current price of $2 reflects cautious 2025 guidance but shows potential for long-term appreciation.

BBD has a total of 86222 employees.