NEW YORK (TheStreet) -- Shares of Banco Bradesco (BBD) - Get Reportclosed up on Tuesday as Barclays increased its price target on the Brazilian bank holding company to BRL28.50 from BRL26 based on valuation.
Barclays maintained its "equal weigh" rating on the stock, Barron's noted.
Among Brazilian banks, the firm said investors should lean toward firms who have healthy provision coverage levels. System loan growth has been "virtually non-exist" in Brazil, due to the weak economy and limited public sector bank credit supply, Barclays added.
The firm is bullish on Itau Unibanco (ITUB), calling it a "preferred stock," as a result of its capital ratios, prudent bad loan coverage that protects from risks and its premium returns. Barclays has an "overweight" rating on the stock and raised its price target on Itau Unibanco to BRL40 from BRL36.
Additionally, the firm maintained its "equal weigh" rating on Banco de Brasil (BDORY) and upped its price target to BRL22.50 from BRL20.50 due to "positive medium-term earnings revisions." Banco de Brasil now expects earnings growth of 5% or more in both 2017 and 2018.
Shares of Itau Unibanco closed higher during Tuesday's trading session. Banco de Brasil stock closed up on Tuesday.