We are reiterating our Outperform recommendation on Gafisa S.A. (GFA). We have been encouraged by the Stimulus Package and the tax relief announced by the Brazilian government during 2009 and the strong economic recovery of the Brazilian internal market since the onset of the economic crisis.
Third quarter 2009 results were quite positive, mainly considering the still-difficult international economic environment. The Government Housing Program and the R$600 million debenture from Caixa Economica will help Tenda to expand its business plan for the development of projects in the lower-income sector.Zacks Investment Research
