Bradesco: The Election Repriced The Risk, So I'm Downgrading To Hold
Bradesco is downgraded from Buy to Hold with a new target price of $2.66, reflecting heightened macroeconomic and political risks. Despite solid Q3 results-net income up 14.6% YoY and efficiency improved to 45.4%-credit quality is deteriorating, with NPLs rising to 4.6% and coverage falling. The post-election selloff is attributed to increased uncertainty over Brazil's fiscal policy, surging interest rates, and consumer debt stress, not company-specific issues.
Seeking Alpha10/27/2026Negative