Banco do Brasil initiated with a Buy at Jefferies

Jefferies analyst Inigo Vega initiated coverage of Banco do Brasil with a Buy rating and R$76.40 price target. The analyst initiated coverage of the Latin America banks sector, saying the average shareholder return over 10 years has been mediocre owing to an overall derating and above-par currency depreciation. The firm’s 10 Buy-rated stocks offer an average 36% upside. Its top picks are Nubank, Credicorp, Banco do Brazil among the large cap names, and Regional, Gentera and Bladex in the SMID space. Jefferies says Brazil and Peru comprise half its Buys, “reflecting the relatively low valuations but there are interesting stories in almost every market.”