Banco Santander Brasil (BSBR – Research Report), the Financial sector company, was revisited by a Wall Street analyst on February 5. Analyst Mario Pierry from Bank of America Securities maintained a Hold rating on the stock and has a $4.90 price target.
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Mario Pierry’s rating is based on Banco Santander Brasil’s continued improvement in net income and return on equity, reflecting a successful earnings normalization process driven by strong net interest income and improved efficiency. However, Pierry notes a deceleration in loan growth, which may hinder the momentum of earnings normalization as the bank focuses on maintaining asset quality.
Furthermore, regulatory changes requiring higher provision charges are expected to impact the bank’s capital slightly. Despite these challenges, the bank’s valuation at 1.1 times trailing price-to-book is considered fair, leading to a Hold rating as the stock appears to be appropriately priced given the current outlook.
Pierry covers the Financial sector, focusing on stocks such as Banco Santander Brasil, XP, and Itau Unibanco. According to TipRanks, Pierry has an average return of -10.9% and a 24.49% success rate on recommended stocks.