Itau Unibanco upgraded to Buy from Neutral at UBS

UBS analyst Thiago Batista upgraded Itau Unibanco (ITUB) to Buy from Neutral with a price target of R$41, down from R$42. The stock’s current valuation is attractive for a “premium” Brazilian bank, even considering the higher cost of equity in the country, the analyst tells investors in a research note. The firm expects a combination of “decent” profitability with a double digit dividend yield for Itau Unibanco.