J.P. Morgan keeps neutral target for Direcional stock at BRL 17.50

Published on 10/21/2026 at 06:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Operating cash reached BRL 228 million in the third quarter. Direcional stock saw sales fall 27.00 percent and launches 45.70 percent year over year.

Operational pressure and cash

BlackRock held 5.082 percent of Direcional on September 18, 2026.
Third-quarter launches fell 45.70 percent on October 14, 2026.
Sales velocity stood at 19 percent in the third quarter of 2026.
Direcional is scheduled to publish third-quarter results on November 9, 2026.

Direcional, BRDIRRACNOR0, Illustration mit AI erstellt.

J.P. Morgan kept a neutral view and a BRL 17.50 price target for Direcional stock after the company's third-quarter operating update on October 15, 2026, according to Valor Investe. The report highlighted weaker sales and launches alongside stronger operating cash generation.

Cash improved as launches slowed

Direcional generated BRL 228 million in operating cash in the third quarter of 2026, versus BRL 114 million in the same period of 2025. Accounting cash generation was BRL 10 million, while the adjusted figure reached BRL 66 million after BRL 56 million in transfer receivables were collected in early October, according to El Fondo.

The cash result did not erase the commercial slowdown. Net contracted sales on the company's share reached BRL 1.05 billion, down 27.00 percent year over year, while launches totaled BRL 1.10 billion, down 45.70 percent. The sales-over-supply velocity ratio was 19 percent in the quarter.

What changed during 2026?

On September 18, 2026, BlackRock held 26,453,054 Direcional common shares, equal to 5.082 percent of the company's capital, strictly for investment purposes, according to Finance News. On October 14, 2026, Direcional disclosed BRL 228 million in third-quarter operating cash and said seven projects were planned for October, according to Reuters. On October 15, 2026, J.P. Morgan maintained its neutral stance with a BRL 17.50 target after reviewing the operating figures, as reported by Valor Investe.

When are the next results due?

Direcional's next scheduled date is November 9, 2026, when it is listed for third-quarter results in the Brazilian earnings calendar published by InfoMoney. The report should clarify whether the delayed launches and the cash conversion can improve together.

Operational signals outweigh the cash headline

For investors, the key tension is the gap between BRL 228 million in operating cash and the 27.00 percent annual decline in contracted sales. Direcional remains a Brazilian real estate developer focused on low-income and middle-income housing, and its shares trade on B3 under ticker DIRR3, according to Global Banking and Finance. The November results will put the third-quarter operating preview into a fuller earnings context.