STXNEWS LATAM-Credit Suisse cuts target, rating for Banco do Brasil

viernes 14 de febrero de 2014 08:56 GYT
 

Credit Suisse analysts led by Marcelo Telles on Friday trimmed the price target for shares in state-run Banco do Brasil SA to 23 reais from 30 reais, and the rating to "neutral" from "buy," citing weaker-than-expected fourth-quarter results. The firm also cut earnings estimates for Brazil's largest bank by assets by an average of 11 percent for 2014 and 2015. The firm left estimates for return on equity at 13.6 percent, according to a client note.

"This new reality of the bank will shift focus towards profitability, hurting growth," the note said.

On Thursday, Banco do Brasil posted results that missed analysts' estimates due to higher funding costs and a spike in loan loss provisions. Recurring net income, or profit excluding one-time items, totaled 2.424 billion reais ($1 billion) in the quarter, down 7.1 percent from the third quarter and 23.8 percent from the year-earlier period. A Reuters poll of eight analysts expected recurring profit of 2.606 billion reais for the quarter. ($1 = 2.42 Brazilian reais)