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Banco do Brasil upgraded to Buy after election sell-off; stock trades at decade-low valuation.

Analyst Insights
13 Nov 2026, 13:00 WIB
Seeking Alpha
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Bullish
Banco do Brasil upgraded to Buy after election sell-off; stock trades at decade-low valuation.

Banco do Brasil's stock is upgraded to Buy following a post-election sell-off and weak third-quarter results, trading below 0.5x book value—the cheapest in at least 10 years. Despite a 3Q26 profit drop to R$1.3 billion and a nearly halved 2026 guidance with reduced dividends, new loans show improved payment rates, indicating old loans are the main issue. The bank's stake in BB Seguridade alone accounts for nearly 60% of its price, suggesting significant upside potential if return on equity recovers to 12% by 2028. Key risks include political factors, capital needs, and a prolonged agricultural cycle.

Banco Do Brasil's stock trades below 0.5x book value after two sell-offs, marking it as the cheapest in at least a decade. For readers following the Financials sector, here is Pluang's market snapshot as of Nov 13, 2026 16:51 WIB: of 142 priced Financials-sector US stocks tradable on Pluang, 68 rose and 60 fell today. Notable movers include CBOE at USD 376.99 (+2.20%), CLSK at USD 6.69 (-2.19%), and GLXY at USD 14.85 (-2.17%).

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