What makes Credit Suisse (and other banks) excited about builders like MRVE3?

Banks have seen a more positive scenario for low-income people, such as MRVE3, supported by Minha Casa, Minha Vida (Image: Lúcio Távora / MCIDADES)

O Credit Suisse is excited about low-income homebuilders listed on the B3. Therefore, the Swiss bank reiterated its buy recommendation for the shares of MRV (MRVE3), Directional (DIRR3) It is Tent (TREND3). However, the institution adjusted the target price of some shares.

With that, Credit cut MRV price targetfrom R$15 to R$14, while raised from BRL 21 to BRL 22 estimates for Direcional. For Tenda, the target price of R$ 11 was maintained, despite the bank having made a recent update on the mining construction company’s shares.

MRV and Tenda are the stocks that most shine in the month. Considering this Friday’s trading session (26), the shares advance 40% and more than 35%, respectively. On the other hand, Direcional has a more timid high, of 12%.

In addition to the first-quarter results released this month, other factors are being seen as drivers of builder shares, according to Credit Suisse and other banks.

The beam for lifting MRV and other construction companies

That construction companies’ shares are heavily discounted, everyone knows. However, an event can improve their performance. So much so that the Swiss bank sees 40% upside potential for the papers of the Tent.

For Credit Suisse analysts Pedro Hajnal and Vanessa Queiroga, with long-term interest rates potentially coming down, it’s possible to see a downward revision in the cost of equity, pushing equities higher. In addition, they highlight the country’s more positive macroeconomic scenario.

“We see the operations of low-income builders being boosted by possible program adjustments My home, my life. In addition, we see an attractive opportunity in the microdynamics of each company also triggering operations. Therefore, increasing returns”, they evaluate.

Last week, ohfederal government announced new members of the Board of Trustees of FGTS. On June 7, the new names will meet with the old ones to, presumably, vote on a package of proposals for the government’s housing program.

According to real estate analysts at Santanderthese proposals to be presented by the Ministry of Cities have the potential to accelerate sales rates on offers, as well as allow that the gross margins of these companies approach even more pre-Covid-19 pandemic levels.

Spanish bank analysts highlight as one of the main changes appotential acceleration in the number of financed units for families with income of up to R$ 2,600 per month. Furthermore, according to them, the federal government plans to increase the number of families served by the program and raise the value of maximum subsidies.

“It is also expectedThe possible resumption of the ‘special line’, which offers subsidized financing rates for the acquisition of Tier 4 units, in which prices are up to 150% above the maximum prices of Minha Casa, Minha Vida”, comments the Santander team, reiterating that the view is constructive for low-income homebuilder actions.

Bank prefers low income

O JP Morgan is also more optimistic about the low income builders after the results of the first quarter and, still, seeing a recent improvement in relation to the feeling with the economic scenario of the country.

They point out that construction companies show an appreciation of almost 30% in the year, while the Ibovespa rises 2%, in the midst of andexpectation of falling interest rates, falling monthly inflation and reduced country risk.

In the segment, the North American bank has preference for MRV, Direcional and Tenda, in that order. Therefore, they say see npositive news ahead.

“The implementation of payroll-deductible FGTS and mortgages with a 35-year term should also boost stocks. In addition, hiring units from the ‘You may come in’ during the third and fourth quarters they also represent an important trigger for low income”, they comment, referring to the housing program of the city of São Paulo.

Medium and high-income builders on the radar

Banks are also paying attention to the middle and high income segment, revising estimates. Credit Suisse reiterated its recommendation to buy the shares of cyrela (CYRE3), raising the target price to BRL 22 from BRL 21 previously.

However, for the eztec (EZTC3), the recommendation remains neutral. The Swiss bank cut the estimates for the papers, going from R$ 24 to R$ 20 per common share.

“Although we remain cautious with the middle-income market, we maintain a positive view for Cyrela, based on the high quality of its project portfolio, in addition to the high liquidity of the shares, which is essential for most investors who wish to participate in a inflection of rates”, assess Hajnal and Queiroga, from Credit.

On the other hand, the projections for Eztec are more contained. According to them, future changes in long-term prices and demand that is different than expected in the city of São Paulo may be limiting factors for an advance in the stock, as well as fiercer competition than expected.

Moreover, JP Morgan is also betting on the shares of the two construction companies in their segments. “Especially the middle and high income segment should benefit from the improvement in the macroeconomic scenario, given the qcontinuous decline in long-term real interest rates,” says the bank’s team.

Cyrela’s shares soar 26% in May, while those of Eztec, also listed on the Ibovespa, advance close to 20%.

Source: Moneytimes

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