JPMorgan cuts Banco do Brasil price target to 22 reais

On 16 September 2026, JPMorgan lowered its target price for Banco do Brasil shares to 22.00 Brazilian reais for December 2027. Previous targets stood at 24.00 Brazilian reais according to Reuters and 25.00 Brazilian reais according to InfoMoney.

The bank reduced its 2026 recurring net income projection for the lender by 8.0% to 16.879 billion Brazilian reais. That implies an 18.0% drop against the previous year and a return on equity of 9.0%. The new figure sits 2.0% below the Bloomberg consensus across 11 brokerages.

For 2027, JPMorgan cut its recurring profit forecast by 12.0% to 23.524 billion Brazilian reais. The projection represents a 39.0% annual increase and a return on equity of 12.0%, trailing the Bloomberg consensus by 6.0%.

The revisions follow a 7.5 percentage point increase in the over-90-day non-performing loan ratio for credit cards reported in the second quarter of 2026.