BBD - Bradesco Q1: Reporting More Than Promised (Rating Upgrade)
2025-05-09 12:29:55 ET
Summary
- I am raising my recommendation from Hold to Buy on Bradesco shares due to strong earnings results and a successful turnaround.
- Bradesco's expanded loan portfolio grew 12.9% y/y, with improved credit quality and reduced non-performing loans, supporting the investment thesis.
- Net interest income increased 13.7% y/y, driven by loan portfolio growth and effective NPL control, enhancing financial results.
- Bradesco's valuation shows potential upside, with a P/B lower than peers, and strong results could trigger upward earnings revisions and stock momentum.
Investment Thesis
I am raising my recommendation from Hold to Buy on Bradesco shares (NYSE: BBD ) after the Q1 2025 earnings release. This article is a continuation of my introductory coverage article published on May 23, 2024....
Bradesco Q1: Reporting More Than Promised (Rating Upgrade)