JPMorgan raises Eztec to overweight with R$ 19 target

JPMorgan raised its rating on Brazilian homebuilder Eztec from neutral to overweight, the equivalent of a buy recommendation, in a research report released on October 5, 2026. The bank set a target price of R$ 19 per share for December 2027.

The upgrade followed the outcome of the first round of Brazil's presidential election on Sunday, October 4. JPMorgan analysts noted that the election outcome increases the likelihood of a government change, which could compress long-term real interest rates, lower the cost of capital, and benefit higher-beta builders focused on middle and high-income buyers.

In a sensitivity analysis assuming a 1.5 percentage point drop in the cost of equity, JPMorgan estimated that Eztec's target multiple could rise to 0.81 times book value, up from 0.70 times currently. Historically, during the 2018 election cycle, Eztec saw a 27% increase in its price-to-earnings multiple and a 64% increase in its price-to-book multiple over 12 months. Between the rounds that year, its multiples expanded between 12% and 27% in P/E and between 14% and 17% in P/BV. JPMorgan calculates Eztec's P/E multiple could reach approximately 8 times by the second round on October 23.

Beyond macro expectations, JPMorgan highlighted operational catalysts for Eztec. The Esther Tower, an office development recently leased to Itaú, represents potential sales value between R$ 1.5 billion and R$ 2 billion. The bank also pointed to Eztec's above-expectation financial results, supported by strong margins and sales of older land plots at attractive prices.