Bradesco: A Turnaround That Is Working, And Still Cheap Enough To Buy

Summary Banco Bradesco is rated Buy with a 12-month target of $4.15–$4.30, reflecting 18–22% upside from $3.52. BBD’s turnaround is evident in rising earnings, improving efficiency, and a shift toward collateralized lending, though reported NPLs remain elevated. The insurance arm delivers strong, steady returns, supporting consolidated results even as banking faces macro headwinds and rising provisions. Valuation is attractive at 1.05x book, with a credible path to mid-teens ROE, a supportive capital increase, and a near 7% yield. Alfribeiro/iStock Editorial via Getty Images Investment Thesis I rate Banco Bradesco ( BBD ) a Buy, with a 12-month target of $4.15 to $4.30, about 18 to 22% above the current $3.52. The stock is trading at 1.05x book and around 6.9x forward earnings, and for a bank, I This article was written by GT Research 151 Followers Follow I have a strong interest in fundamental equity research, with a focus on companies with smaller market capitalizations. I look for underfollowed or misunderstood businesses with solid fundamentals, attractive long-term potential, and valuations that may not fully reflect their prospects.My approach emphasizes business quality, financial performance, management, capital allocation, valuation, and downside risk. I write on Seeking Alpha to share independent investment ideas, refine my research, and engage with other investors.Closely associated with Rafael Binatti Costa. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.