BDORY - Banco do Brasil: Shares Remain Attractive After The Rally

2024-02-15 06:07:39 ET

Summary

• Banco do Brasil has performed well since I opened on it with a Buy rating last October, outperforming most of its peers and Brazilian equities more generally.
• Q4 results capped off a solid year, with the bank continuing to generate very healthy levels of profitability even while certain peers have struggled.
• Despite rallying closer to book value, these shares still look around 25% undervalued, while capital return potential also remains compelling.

Banco do Brasil (BDORY)("BdB") has done well since I initiated coverage with a 'Buy' rating in October, with a circa 30% total return roughly matching the performance of peer Itaú ( ITUB ) and landing well ahead of Banco Bradesco ( BBD ), Banco Santander (Brasil) ( BSBR ) and indeed Brazilian equities ( EWZ ) more broadly....

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