2024-01-13 05:19:34
In the same report, however, the institution raised its recommendation for Itaúsa (ITSA4) from neutral to purchase
BRUNO FERNANDES/FOTOARENA/ESTADÃO CONTENT Banco Bradesco unit in São Paulo
A Goldman Sachs downgraded its stock recommendation Bradesco (BBDC4) from neutral to sell. In a report released this week, the company stated that the ROE, a profitability metric among banks, is expected to remain well below historical levels. Analysts estimate a slight improvement in the bank’s ROE, from 11.3% to 12.9% from 2023 to this year — in the last decade, Bradesco’s average was 18%. “Bradesco was the most severely affected by the last cycle in Brazil, in part due to its structural exposure to low-income consumers and a less restrictive approach to credit origination”, point out Goldman analysts. In the same report, however, the institution raised the recommendation to Itaúsa (ITSA4) from neutral to purchase. “The stock is an attractive vehicle through which investors could gain exposure to Itaú,” Goldman said in the document.
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