Feb. 22 (Bloomberg) -- Banco Bradesco SA, Brazil's second- largest non-state bank, was upgraded to ``outperform'' from ``peer perform'' at Bear Stearns Cos., while the brokerage cut its recommendation on shares of Banco do Brasil SA.

Bradesco gained preference over Banco do Brasil because of earnings-growth prospects in its insurance and private pension business, analysts Saul Martinez and Matias Sacerdote wrote in a report today.

Banco do Brasil, Latin America's biggest bank by assets, was downgraded to ``peer perform'' from ``outperform.''

To contact the reporter on this story: Telma Marotto in Sao Paulo at Tmarotto1@bloomberg.net

Last Updated: February 22, 2008 05:54 EST