July 12 (Bloomberg) -- Rossi Residencial SA, Brazil’s sixth-biggest homebuilder by market capitalization, tumbled after reporting contracted sales fell 24 percent in the second quarter.
Rossi lost 7 percent to 3.99 reais in Sao Paulo, extending a four-day drop to 22 percent. The benchmark Bovespa index fell 0.3 percent today.
“Rossi’s figures were weak and should reinforce our more conservative stance on the stock,” Credit Suisse Group AG equity analysts including Guilherme Rocha wrote in a note to clients. “Rossi should face a challenging scenario in the short term consisting of contracting margins and potential execution risks on the back of a high volume of units to be delivered.”
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