Itaú's ADRs drop 20% post-Brazil election, boosting valuation but highlighting macro risks.

Itaú Unibanco's American Depositary Receipts (ADRs) fell 20% following Brazil's presidential election, reflecting increased macroeconomic risks but making the bank's valuation more attractive. Despite the selloff, Itaú maintains strong fundamentals with a recurring return on equity above 24% and a low delinquency rate of 1.9%. Upcoming Q3 earnings on November 3 will be crucial to assess if Itaú can sustain its 2026 guidance amid challenges like higher interest rates, slower growth, and a weaker Brazilian real. Historically, Itaú trading near twice its book value has presented a good entry point for investors.

Itau Unibanco's ADRs trade at USD 7.73 on Pluang as of Oct 27, 2026 21:42 WIB, near their 52-week low of USD 7.02, indicating a cautious market stance despite a slight 1-day gain of 0.39%. The stock's dividend yield stands at 2.22%, and all Pluang order activity is currently on the buy side. This trading behavior occurs in the context of heightened macroeconomic risks following Brazil's presidential election, as noted in the news.