Plano&Plano has 130% upside potential according to Itaú BBA

After meeting with the builder's management, Itaú BBA reiterated its buy recommendation for PLPL3 and kept the target price at R$ 15. The report points to a potential appreciation of 130.4% over a year, putting the stock in the spotlight across markets.

Appreciation potential and target price

Based on the current price of R$ 6.51, the R$ 15 target represents a 130.4% gain for investors. The bank notes that the share is trading at 2.8 times the estimated 2027 earnings, suggesting the stock is heavily discounted.

Margin recovery and commercial strategy

Plano&Plano's management forecasts the gross margin gradually rising to 35%, driven by newer projects that replace older, higher‑cost launches. The builder is also redesigning its projects and aligning its commercial strategy with competitors' practices, aiming to accelerate sales in the medium term.

Expansion in Goiânia and cost control

The company plans to increase its presence in Goiânia, a market considered less competitive than São Paulo. At the same time, it is seeing greater stability in construction costs and expects a slight slowdown in the coming months.

Competition in the low‑income housing market

In São Paulo, the number of launches under the Minha Casa, Minha Vida program jumped from about 30,000 units per year (2020‑2023) to roughly 90,000 units in the last 12 months, reflecting the entry of mid‑income builders from other regions. This pressure led Plano&Plano to prioritize inventory control and discount concessions, measures that boosted sales but compressed margins.

Impact of Caixa's selectivity in financing

Itaú BBA highlights Caixa Econômica Federal's more selective stance on housing‑loan approvals. So far, Plano&Plano's customers have not been subject to the new interviews adopted by Caixa, which could affect the sales pace.

With information from Money Times, SpaceMoney.