UPDATE: Bradesco BBI Assumes Itau Unibanco (ITUB) at Outperform
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Bradesco BBI analyst Gustavo Schroden assumes coverage on Itau Unibanco (NYSE: ITUB) with a Outperform rating.
The analyst comments "We are assuming coverage of Itaú Unibanco with an Outperform rating, and as our preferred name among large-cap retail banks. Itaú Unibanco should post the highest earnings growth among large cap peers (2020-2022E CAGR of 26% vs. 20% for the banking system) and, consequently, the strongest ROE expansion in the next two years (+500bps from 2020 to 18.8% in 2022, vs. +460bps for the system to 17.1%), while its valuation also seems more attractive compared to its private-sector peers (ITUB ex-XP trading at 2022E P/E of 8.1x) vs. 9.2x for Santander Brasil. Finally, we are 3% above consensus for 2021 and 2022."
Shares of Itau Unibanco closed at $5.69 yesterday.
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