ADRs in Focus: Latin American homebuilders climb

Shares of Latin American home builders trading on U.S. markets moved higher on Friday as a Citi Investment Research analyst raised her price target on Brazilian home builder Gafisa SA.

Cecilia del Castillo reiterated her "Buy" rating and raised her price target on Gafisa to $57 from $50 in a note to investors, predicting the company will remain a leader in the Brazilian housing market.

The price target implies expected growth of 27 percent over its closing price of $44.90 on Thursday.

The analyst said she expects Gafisa to post a year-over-year growth of 39 percent in revenue and 55 percent in net income, calling it an all-around strong company with a positive business model that is poised to take advantage of the country's housing book.

"Our thesis centers on the view that Gafisa is on its way to become the leading homebuilder in Brazil," she said.

ADRs of Gafisa gained $1.52, or 3.5 percent, to $46.38, after reaching a fresh 52-week high of $50.07 earlier in the session.

Meanwhile, Mexico's Desarolladora Homex SAB de CV gained 87 cents to $60.80.

The broader Latin American ADR index edged higher. The Bank of New York Latin America ADR index gained 5.58 points to 470.04.

The Bank of New York Composite ADR index gained 1.32 points to 184.72.

ADRs, or American Depositary Receipts, are securities that allow foreign companies to trade on U.S. markets.