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Investing.com - JPMorgan downgraded Direcional Engenharia SA (BVMF:DIRR3) from Overweight to Neutral while raising its price target to R$18.50 from R$15.80.
The downgrade comes despite JPMorgan’s expectation that the Brazilian homebuilder will continue to report strong results. The firm cited "relative valuation and upside to the peer group" as the primary reason for the rating change.
JPMorgan believes most of Direcional’s strong performance is already reflected in the current share price, noting limited upside potential to the company’s record gross margins of 41.7% reported in the second quarter.
The investment bank’s financial projections for Direcional Engenharia largely align with market consensus estimates, suggesting limited surprise factors ahead.
JPMorgan also highlighted that dividend distributions in absolute terms are expected to be lower in 2026 compared to 2025, due to one-off payments related to the RIVA divestment occurring this year.
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