Banco Bradesco SA

“Bradesco possesses a durable insurance franchise and operates in an underpenetrated Brazilian credit market, but its retail bank is in structural retreat against Nubank, incremental capital has earned sub-cost-of-equity returns for five consecutive years, and the current P/B of 1.25x prices in a full transformation that remains unproven; the stock has nearly doubled from its 2024 lows and now offers thin margin of safety, making it uninvestible for new capital while warranting a trim for existing holders who have captured the cyclical recovery.”