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RIAA3: Higher Margin Assumptions Will Support Stronger Earnings Multiple

Brazil's Urban Growth Will Empower Digital Fashion Despite Risks

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RIAA3
AnalystHighTarget
Not Invested
Published 27 Jul 2025
2 viewsusers have viewed this narrative update

Update shared on 10 Mar 2026

Fair value Increased 1.53%
10 Jun
R$8.48
AnalystHighTarget's Fair Value
R$16.20
47.7% undervalued intrinsic discount
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1Y
4.2%
7D
1.6%

Analysts now set their price target for Guararapes Confecções at R$17.00, a modest lift from R$16.74, reflecting updated assumptions for slightly lower revenue growth, a higher discount rate, a firmer profit margin, and a somewhat lower future P/E.

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. This may be important if you want to vote on corporate matters or follow governance decisions (Key Developments).

Valuation Changes

  • Fair Value: R$16.74 to R$17.00, a small upward adjustment in the modelled estimate.
  • Discount Rate: 23.60% to 24.30%, indicating a slightly higher required return in the valuation.
  • Revenue Growth: 9.26% to 8.95%, a modest trim to expected top line expansion assumptions in R$ terms.
  • Net Profit Margin: 4.99% to 5.41%, reflecting a slightly higher assumed profitability level.
  • Future P/E: 23.49x to 22.33x, indicating that a somewhat lower valuation multiple is being used in the model.

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Disclaimer

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