UPDATE: JP Morgan Downgrades Gafisa to Underweight

According to a research report this morning, JP Morgan downgrades Gafisa GFA from Neutral to Underweight. JP Morgan explained, “Despite the potential positive news from higher participation of minorities on Gafisa's board, we are downgrading Gafisa to UW from Neutral given the lack of visibility on results, margins, cash generation, and the potential dilution from the Alphaville transaction. The company is trading a 0.5x P/BV which we believe it is justified given recent losses and null ROE.” Gafisa closed Friday at $2.74 as JP Morgan maintains its PT of 5.50.