Bradesco downgraded to Hold as rising risks and credit issues overshadow solid Q3 results.

Bradesco's rating was downgraded from Buy to Hold with a new target price of $2.66 due to increased macroeconomic and political risks in Brazil. Despite strong Q3 earnings, including a 14.6% rise in net income and improved efficiency, the bank faces deteriorating credit quality with non-performing loans rising to 4.6%. The post-election market selloff reflects broader concerns about Brazil's fiscal policy, rising interest rates, and consumer debt stress rather than company-specific problems. The stock now trades below book value, and its return on equity is below the cost of equity, prompting a more cautious investment outlook.

Bradesco's shares trade at USD 2.98 on Pluang as of Oct 27, 2026 18:33 WIB, slightly above its 52-week low of USD 2.93 but well below the 52-week high of USD 4.51. Despite the recent downgrade to Hold, the stock shows a positive 1-day change of 1.54% and offers a dividend yield of 7.95%, indicating some income potential amid market caution. Most Pluang users are buyers, with 98% of order activity favoring purchases over sales.