Update shared on 18 Dec 2025
Fair value Decreased 32%Analysts have reduced their price target on São Martinho from R$20.50 to R$13.90, reflecting a more cautious view on revenue growth and profitability, as well as a higher required return despite a richer assumed future valuation multiple.
What's in the News
- São Martinho S.A. (BOVESPA:SMTO3) was removed from the FTSE All-World Index (USD), which may reduce passive fund ownership and trading liquidity (Index Constituent Drops, FTSE All-World).
Valuation Changes
- Consensus Analyst Price Target was reduced significantly from R$20.50 to R$13.90, indicating a markedly lower fair value estimate.
- The Discount Rate increased moderately from 18.38 percent to 20.03 percent, reflecting a higher required return and perceived risk.
- Revenue Growth was revised down slightly from 3.55 percent to 2.72 percent, pointing to more conservative top line expectations.
- Net Profit Margin was cut sharply from 9.96 percent to 5.36 percent, implying weaker expected profitability.
- Future P/E was raised meaningfully from 13.21x to 18.68x, suggesting a richer valuation multiple applied to lower earnings expectations.
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