Banco do Brasil downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Banco do Brasil (BDORY) to Neutral from Buy with a price target of R$26, down from R$31. The firm expects the company’s earnings growth outlook to be more challenging given the deterioration in asset quality, particularly in rural loans, and a slowdown in net interest income growth, pressured by funding costs, weaker loan growth and a smaller contribution from Patagonia.