Harvest reviews banks on the stock exchange and cuts BB target price
Banco do Brasil, Bradesco and Itú suffer downgrades in a harvest report focused on 2027.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM SEU DINHEIRO · 2 MIN
The Brazilian banking sector has entered the financial market's caution radar in the face of challenging macroeconomic projections for the coming years. According to a survey published by Seu Dinheiro, Banco Safra revised its recommendations for the country's main financial institutions due to the expectation of economic worsening in 2027.
The analysis, written by Daniel Vaz and Rafael Nobre, points out that the future scenario should be marked by weaker credit, higher risk costs and pressure on assets, as reported by Seu Dinheiro. In this restrictive environment, analysts adjusted the outlook for publicly traded sector giants.
Among the most drastic changes highlighted by the vehicle, Banco do Brasil (BBAS3) had its recommendation downgraded from neutral to sale. Furthermore, the target price of the paper was cut from R$26 to R$19 by Safra, according to Seu Dinheiro.
The review movement also affected other major institutions on the Brazilian stock exchange. According to Seu Dinheiro, Bradesco (BBDC4) saw its recommendation reduced from buy to neutral, while its target price went from R$22 to R$17.
Itaú (ITUB4) was another important name that suffered a recommendation downgrade in the same review conducted by Safra. Given the scope of the cut in the sector, only one share escaped being cut in analysts' assessments, according to data released by the vehicle.
What changes for the investor
The profound reassessment of the banking sector by large financial institutions highlights how medium-term planning and fiscal and economic uncertainty directly impact the pricing of assets on the stock exchange. For those who operate and invest with a focus on fundamentals and risk management, the deterioration of credit conditions and the increase in the cost of risk require rigorous monitoring of portfolios, reflecting the natural volatility of the Brazilian capital market in the face of adverse macroeconomic scenarios.
Automatically translated from Portuguese.
