Banco Bradesco downgraded to Sell from Buy at Goldman Sachs

Goldman Sachs downgraded Banco Bradesco (BBD) to Sell from Buy with a price target of $2, down from $2.40. The bank’s return on equity remains below its cost of equity on a fully-year basis until at least 2027, while still lagging Itau and Santander Brasil, the analyst tells investors in a research note. Goldman believes Bradesco’s “muted” profitability should limit its organic capital generation, following a year when shareholders’ equity remained stable.