Gafisa SA, Brazil’s fourth-biggest homebuilder by revenue, jumped to a ten-month high as sales almost tripled in the last quarter of 2012.
Shares rallied 6.1 percent to 5.20 reais at the close of trading in Sao Paulo. It was the second-best performance on the BM&FBovespa Real Estate index, which fell 0.4 percent.
Sales jumped to 905.2 million reais ($444 million) in the three months through December from 338.4 million reais in the same period of 2011, Gafisa said in a regulatory filing on preliminary quarterly results after the market closed yesterday.
“Although the company was hurt again by client cancellations in its low-income division, sales speed was a positive surprise,” David Lawant, Enrico Trotta and Vivian Salomon, analysts at the investment bank Itau BBA, wrote in a note to clients published today. They have a buy recommendation on the stock, with a 12-month price target of 6.40 reais.
Brookfield Incorporacoes SA advanced 5.5 percent to 3.86 reais, the highest level since October, after reporting late yesterday that sales in the fourth quarter of 2012 met its guidance at 1.1 billion reais. That is a 17 percent decline from the same period a year earlier.
Even Construtora e Incorporadora SA gained 0.6 percent to 9.45 reais. The homebuilder’s new projects soared 72 percent to 1.2 billion reais in the fourth quarter from a year earlier.