Skip to contentHome page Seeking Alpha - Power to InvestorsBrazilNov 13, 2026, 6:00 AM ETBanco do Brasil S.A. (BDORY) StockBBSEY, BBD, BBDO, BSBR, ITUB, NUPedro Augusto Prazeres355 FollowersSummaryI'm upgrading Banco do Brasil to Buy. After the election sell-off and a weak 3Q26, the stock trades below 0.5x book, the cheapest level in at least 10 years.3Q26 adjusted profit fell to R$1.3 billion, the 2026 guidance was cut almost in half, and the payout went down to 25%, so dividends will be weak in the short term.Loans made under the new and stricter rules have a 91% on-time payment rate, against 76% for older crops, which shows the problem is concentrated in the old loans.The 68% stake in BB Seguridade alone is worth almost 60% of the price, leaving the rest of the bank at around 0.2x book.If ROE goes back to 12% by 2028, I see almost 50% upside, while the bear case costs around 16%. The main risks are politics, capital, and a longer agro cycle.Leila Melhado/iStock Editorial via Getty ImagesInvestment ThesisAs usual, I prefer to make my stance clear right from the start, and I'm upgrading Banco do Brasil S.A. (BDORY) to Buy.Back in January, when I rated the stock a Hold, my reading was that the bank wasThis article was written byPedro Augusto Prazeres355 FollowersEnglish and Brazilian Portuguese localization specialist and writer specializing in Finance, Economics, and Investments. My strategy is focused on wealth preservation, income, and long-term appreciation. My national portfolio is made of Brazilian hand-picked stocks and real estate funds, and my international one consists of ETFs that cover the entire globe.Analyst’s Disclosure: I/we have a beneficial long position in the shares of BBAS3 either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments