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RIAA3: Stable Fair Value And Higher Future P/E Will Support Upside Potential

Digital Competition Will Further Erode Outdated Retail Footprints

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RIAA3
AnalystLowTarget
Not Invested
Published 28 Jul 2025
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Update shared on 22 Apr 2026

22 Apr
R$8.81
AnalystLowTarget's Fair Value
R$12.00
26.6% undervalued intrinsic discount
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1Y
10.0%
7D
4.1%

Analysts have kept their price target for Guararapes Confecções steady at R$12.00, citing only minor adjustments in discount rate, revenue growth, profit margin and future P/E assumptions that offset one another in their updated models.

What's in the News

  • Guararapes Confecções has scheduled a Special and Extraordinary Shareholders Meeting for March 17, 2026, to be held exclusively remotely in Brazil (Key Developments).
  • The remote format for the March 17, 2026 meeting indicates the continued use of digital channels for shareholder participation and voting (Key Developments).
  • Investors may want to monitor the formal agenda and proposed resolutions for the March 17, 2026 Special and Extraordinary Shareholders Meeting as they become available (Key Developments).

Valuation Changes

  • Fair Value: R$12.00 remains unchanged in the updated model, indicating no adjustment to the central valuation estimate.
  • Discount Rate: The discount rate moved slightly from 24.43% to 24.12%, pointing to a small recalibration of the required return used in the analysis.
  • Revenue Growth: Expected revenue growth was adjusted marginally from 5.48% to 5.58%, reflecting a very small change in projected top line trends in R$ terms.
  • Net Profit Margin: The net profit margin assumption edged from 5.04% to 4.96%, a minor tweak to expected profitability on R$ earnings.
  • Future P/E: The future P/E multiple shifted slightly from 18.71x to 18.81x, indicating only a very small change in the valuation multiple applied to projected earnings.

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Disclaimer

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