BDORY - Banco Do Brasil Q1: Good Investment Theses Also Have Setbacks

2025-05-19 08:40:08 ET

Summary

• I reiterate my buy rating on Banco do Brasil despite disappointing Q1 2025 results and a 15% share price drop.
• Short-term challenges include rising non-performing loans, lower net income, and regulatory impacts, especially in agribusiness.
• Banco do Brasil remains undervalued versus peers, with a 30% upside potential and resilient core customer base in civil servants and agribusiness.
• One weak quarter doesn't alter my long-term thesis; I see an attractive risk/reward and maintain a positive outlook for 2025.

Investment Thesis

I reiterate my buy recommendation for Banco do Brasil (NYSE: BDORY ) shares after the release of its Q1 2025 results . This article is a continuation of my introductory coverage article published on May 30, 2024....

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