Analysts at Nau Securities led by Iñigo Vega initiated on
Wednesday coverage of Brazilian private-sector banks Itaú
Unibanco Holding SA and Banco Bradesco SA.
Vega and his team rated shares of Itaú "buy" with a price target
of 40 reais; the rating on Bradesco is "fair value" at a target
of 38 reais.
In the case of Itaú, Vega said that while the bank, "like
the rest of the industry, lacks earnings momentum given the
challenging outlook for revenues in 2013 ... we believe that
Itaú's shares are trading at too great a discount to the ratings
commanded by lower-quality franchises in Latin America."
For Bradesco, "given the still low visibility on the
macroeconomic front, we do not think the upside is high enough
to justify a positive view on the stock and also see more upside
elsewhere in the sector and the region," Vega and his team said
in a note.