- Brazilian bank P/E multiples of 7-10x are lower than they're historical range of 10-13x, but they've been at that lower range for the last four years and aren't out of line with Latin American peers. says Goldman, downgrading Banco Bradesco (BBD +1.2%) to Sell.
- Without a lift from boosted valuations, Goldman then looks to earnings, and sees little to get excited about. "We believe consensus estimates have not fully adjusted to material headwinds for growth and asset quality from the downturn in activity," says the team, cutting estimated 2015-2017 EPS by 3% on average to 5-10% below consensus.
- Source: Barron's
- Expected later today are details on a massive write-down from energy giant Petrobras.
- ETFs: BRAF