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It was preserved as a record on October 26; the timeline below shows how it unfolded, with sources. Get the briefing to follow the top situations still developing: three emails a week, sourced and in order.

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2 clusters · 5 sources · 7 days · First seen · Last updated

Brazilian low-income real estate market volatility

Overview

Low-income real estate developers in Brazil, including Cury, Direcional, MRV, Plano&Plano, and Tenda, have seen an average stock price decline of 18% over a three-month period.

This downturn is linked to a more difficult environment for the Minha Casa Minha Vida program, caused by stricter credit approval criteria from Caixa Econômica Federal and delays in contract transfers resulting from employee strikes. While BTG Pactual analysts reduced earnings per share estimates for certain companies like MRV and Plano&Plano due to leverage and margin concerns, they maintained ‘buy’ recommendations, suggesting the market is overly pessimistic and noting that the stocks remain attractive due to high dividend yields and low price-to-earnings ratios.

Entities

BTG Pactual · Cury · MRV · Direcional · Caixa Econômica Federal

Timeline

  1. [BUSINESS] 2 sources
    Brazilian low-income developers face stock declines amid stricter credit rules

    Brazilian low-income developers like Cury and MRV have seen stocks drop 18% due to stricter Caixa credit rules, though BTG Pactual maintains a buy rating, citing excessive market pessimism.

  2. [BUSINESS] 3 sources
    BTG Pactual receives upgraded price target from Citi

    Citi raised its price target for BTG Pactual to R$ 72, citing a diversified business model and high profitability that justifies a valuation premium over traditional Brazilian banks.

Sources

bpmoney.com.br · metroquadrado.com · moneytimes.com.br · seucreditodigital.com.br · seudinheiro.com