Banco Bradesco: Reducing Our Fair Value Estimate to $2.90 Per ADR Share
We are lowering our fair value estimate for no-moat Banco Bradesco from $3.50 per ADR share to $2.90. Around $0.25 of the negative adjustment comes from foreign exchange movements since our last model update. Interest rates in Brazil are declining while interest-rate cut expectations in the US have fallen since the start of the year. This divergence in interest rate policy has placed pressure on the Brazilian real relative to the dollar.