Latest news with #GustavoSchroden
CNBC
a day ago
- Business
- CNBC
Citi double upgrades this Brazilian financial firm, sees potential earnings acceleration ahead
A possible improvement in earnings performance could send shares of Nu Holdings higher over the coming months, according to Citi. The firm double upgraded the Brazil-based financial firm to buy from sell and doubled its price target to $18 from $9, which implies more than 37% upside from Tuesday's close. "Despite concerns on the macroeconomic environment (which we think is performing better than expected), we see the recent quarters as a testament to the bank's ability to not only navigate well but also accelerate in key portfolios while maintaining good asset quality," analyst Gustavo Schroden wrote. "We see the earnings momentum as [likely] to accelerate, not only given Brazil and [total payment volume] dynamics but also given tailwinds from Mexico and Colombia and efficiency aiding ROE." Schroden noted that the company has kept a "strong" pace of credit origination in portfolios such as the interest-earning component and credit cards in particular, highlighting the fact that it's been able to keep its asset quality "under control." An acceleration in total payment volumes could mean more opportunities for cross-selling across the company's product portfolios, the analyst said. Additionally, the company could see a boost from its operations in Mexico specifically. "Mexican operations continue to ramp up, with solid developments in terms of deposits and loans," he said. "The currently low [loan-to-deposit ratio] suggests room to increase leverage and contribute positively to results eventually." Most of the analysts on Wall Street covering Nu Holdings are bullish, with 10 out of 17 having a strong buy or buy rating, per LSEG data. On the flip side, five analysts have taken a neutral view with a holding rating. Shares have had a solid year, gaining more than 26% in 2025. That's almost three times the gains of the S & P 500 in the same timeframe. The stock also rose about 2% in premarket trading Wednesday.
Yahoo
10-07-2025
- Business
- Yahoo
Citi Upgraded Banco Bradesco (BBD) From Neutral to Buy, Also Raised the PT
Banco Bradesco S.A. (NYSE:BBD) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 8, Citi analyst Gustavo Schroden upgraded Banco Bradesco S.A. (NYSE:BBD) from Neutral to Buy, while also raising the price target on the stock from R$13.60 to R$19.50. The analyst noted key drivers behind the upgrade to be the company's improved return on investment, which is expected to improve both in the short and long term. Schroden also expects net interest income of Banco Bradesco S.A. (NYSE:BBD) to improve in 2025 due to better funding costs and a more favorable asset mix. A customer withdrawing money from an ATM, illustrating the company's widespread availability of accounts. Looking ahead into 2026, the analyst suggests that the cost discipline is anticipated to have a stronger impact on results through operating leverage. Citi anticipates the bank's sustainable ROE could reach 16.5% by late 2026. While we acknowledge the potential of BBD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
08-05-2025
- Business
- Bloomberg
Bradesco Soars Most Since 2020 as Turnaround Takes Shape
By and Leda Alvim Save Brazilian bank Banco Bradesco SA has finally begun to reap the results of a turnaround process that started when Chief Executive Officer Marcelo Noronha took the reins about a year and a half ago. Bradesco reported first-quarter recurring net income Wednesday that beat analysts' estimates. That reflected a positive surprise for net interest income and loan-loss provisions that are 'under control,' according to Citigroup Inc. analysts led by Gustavo Schroden. Renegotiated loans also improved, they said.
