Brazil’s Gafisa (GFA) shows that home building can still be a growth business

February 12th, 2008 | Category: Stocks to Buy, Brazil

Readers of that space know that the investment bias is toward large-cap companies with demonstrated trade models and a competitive advantage in established markets, preferably with a favorable global trend for support. But every once in while an exception is made for a non-conforming but innovative and promising company, and along these lines Gafisa S.A. looks appealing.

Gafisa S.A. (NYSE: GFA) constructs residential buildings in middle/upper income areas in 35 markets in Brazil. Analysts like Gafisa’s huge stock of land, interpretation in progress, and finished units, all of which will serve to increase earnings, moving forward.

Further,

outstanding mortgage loans in Brazil are only 2% of GDP. That means there’s room for the nation’s mortgage-based home buyer segment to expand. Meanwhile, lower interest rates in Brazil are providing a tailwind for the nascent, local mortgage market. The First shout F2007/F2008 EPS consensus estimates for GFA are $1.38/$4.18. (Note: Only 1 estimate each year.)

Continue reading Brazil’s Gafisa (GFA) shows that home building can still be a growth business

Original post by Joseph Lazzaro

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.