BUZZ-Bradesco drop versus Itaú 'exaggerated,' Credit Suisse says

** Brazilian lender Banco Bradesco SA's 15.4 percent share underperformance versus rival Itaú Unibanco Holding SA since late January is exaggerated, Credit Suisse Securities analysts said in a Tuesday client note

** The faster decline in Bradesco could be explained by concerns Brazil's No. 2 private-sector lender did not fully hedge against unexpected currency fluctuations in its $5.2 billion purchase of HSBC Holdings Plc (HKSE: 0005.HK - news) 's local unit in August, analysts led by Marcelo Telles said.

** "On a preliminary basis, the impact does not appear that material in our view," Telles said of concerns over Bradesco's hedging of the HSBC acquisition

** Itaú and Bradesco are down 13.8 percent and 27 percent this year, respectively. Bradesco gained 0.8 percent on Tuesday, while Itaú was almost flat

** According to Telles, a maximum 9.5 percent underperfomance of Bradesco relative to Itaú could be justified. Itaú in recent months extended a stock repurchase plan that helped halt a drop in share prices (Other OTC: UBGXF - news)