PDG Heads to One-Month High After Meeting 2011 Growth Target
PDG Realty SA Empreendimentos & Participacoes, Brazil’s biggest homebuilder by revenue, rose to a one-month high after meeting its target for new projects.
PDG gained 3.5 percent to 6.45 reais at 12:04 p.m. in Sao Paulo. A close at that level would be the highest since Dec. 7. The BM&FBovespa Real Estate Index advanced 1.6 percent.
The homebuilder’s new projects increased 29 percent to 9.01 billion reais ($4.89 billion) in 2011, according to a regulatory filing yesterday. The number came at the bottom of PDG’s target, which ranged from 9 billion reais to 10 billion reais.
“We view the operating results as solid, as PDG managed to reach its guidance and speed of sales was kept fairly stable,” Bradesco Corretora analysts including Luiz Mauricio Garcia wrote in a note to clients yesterday.
PDG’s contracted sales rose to 2.04 billion reais in the fourth quarter, up 16 percent from a year earlier, according to the filing. Contracted sales rose 15 percent in 2011 to 7.48 billion reais, the company said.
Brazil’s housing prices rose 1.4 percent in November from the previous month, according to the country’s economic research institute. Inflation, as measured by the benchmark IPCA index, quickened to 0.52 percent in November from 0.43 percent in October, according to the statistics bureau, known as IBGE.
To contact the reporter on this story: Katerina Petroff in Sao Paulo email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org