Bank of America Securities analyst Mario Pierry reiterated a Hold rating on Banco Santander Brasil (BSBR – Research Report) on February 9 and set a price target of $4.90.
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Mario Pierry has given his Hold rating due to a combination of factors affecting Banco Santander Brasil’s financial outlook. Despite the bank’s recent improvements in return on equity (ROE) and net interest income (NII), Pierry anticipates challenges ahead. Specifically, he foresees weaker loan growth and negative market NII as a result of higher Selic rates, which could limit ROE expansion in the coming years.
Furthermore, while the bank’s management has prioritized asset quality by focusing on secured credit products and high-credit-score clients, this strategy is expected to lead to softer loan growth. Pierry’s projections for loan book growth are conservative, and he has adjusted his earnings estimates to be below consensus due to anticipated market NII losses. Consequently, he maintains a cautious outlook, leading to his Hold rating with an unchanged price objective.