Citi analyst Rafael Frade downgraded Santander Brasil to Sell from Neutral with a price target of R$24, down from R$29. The analyst says negative net interest income should continue to weigh on the bank’s results. Citi expects a "major improvement" in Santander Brasil’s profitability level for 2024, but believes below-cost- of capital returns for 2023 combined with "high uncertainty" about the bank’s recurring profitability level makes its valuation "incompatible" with its challenges.
Published first on TheFly
