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.

Citi Upgraded Banco Bradesco (BBD) From Neutral to Buy, Also Raised the PT

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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BBD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.