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GUAR3: Higher Revenue Outlook Will Support Future Upside Potential

Update shared on 10 Dec 2025

08 May
R$8.81
AnalystConsensusTarget's Fair Value
R$13.85
36.4% undervalued intrinsic discount
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1Y
10.0%
7D
4.1%

Analysts have modestly adjusted their price target on Guararapes Confecções to R$13.28, reflecting slightly higher expected revenue growth, offset by a marginally lower profit margin outlook and a small increase in the discount rate.

What's in the News

  • Guararapes Confecções held an Analyst and Investor Day, providing updates on strategy, operating performance, and capital allocation priorities (Key Developments)

Valuation Changes

  • The fair value estimate remained unchanged at R$13.28 per share, indicating a stable intrinsic value assessment.
  • The discount rate increased slightly from 23.23 percent to 23.41 percent, reflecting a marginally higher perceived risk or cost of capital.
  • The revenue growth expectation rose moderately from 7.10 percent to 8.71 percent, pointing to stronger anticipated top-line expansion.
  • The net profit margin forecast edged down slightly from 5.70 percent to 5.67 percent, suggesting a modestly softer profitability outlook.
  • The future P/E multiple estimate declined slightly from 17.17x to 16.58x, implying a marginal reduction in the valuation multiple applied to earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.