STXNEWS LATAM-BofA upgrades Banco do Brasil to "neutral"

Tue Jul 16, 2013 8:16am EDT

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Bank of America Merrill Lynch analysts led by Jorg Friedemann raised their recommendation on shares of Brazilian state-controlled lender Banco do Brasil to "neutral" from "underperform" on Tuesday after a recent drop in the stock's price.

Banco do Brasil shares are down nearly 18 percent since late May.

Friedemann's team also cut the price target for the shares to 23 reais from 26 reais previously, citing higher credit risk and potentially lower asset returns from the bank's pension fund, known as Previ.

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