Brazilian property builder is one of Barclays top picks
Brazil property builder Rossi Residencial SA has been labelled a top pick by Barclays Bank after it added 8.3 per cent to its Sao Paulo trading.
Bloomberg reported that Guilherme Vilazante wrote a note to clients saying that both Rossi Residencial and another Brazilian real estate company, Gafisa SA, were among the most liquid stocks in Brazil as their blue-chip peers were trading with a 32 per cent and 51 per cent premium to protect them.
He added: "We also find considerably greater potential upside for these companies even when using more conservative assumptions about growth."
Mr Vilazante commented that the Brazilian property market has dramatically changed recently and companies were "going back to a solid growth spree" to gain from the increase in demand.
Bloomberg added that Brazil real estate builders have surged, sending the Bovespa Real Estate Index up by 184 per cent.
The stock exchange indicator has risen dramatically thanks to policymakers cutting interest rates to a record low, the economy showing signs of recovering and President Luiz Inacio Lula da Silva unveiling a £15 billon program to build one million new homes.
