Analysts have reduced their price target on Boa Safra Sementes from R$11.95 to R$11.10, citing more conservative assumptions on revenue growth and margins, along with a slightly higher discount rate, partially offset by a modestly higher future P/E multiple.
Valuation Changes
- Fair value: reduced slightly from R$11.95 to R$11.10 per share.
- Discount rate: raised mildly from 18.09% to 18.62%, reflecting a higher required return in the model.
- Revenue growth: assumed revenue growth rate in Brazilian reais lowered from 10.69% to 3.78%, indicating a more cautious outlook for top line expansion.
- Net profit margin: adjusted down from 5.61% to 5.42%, implying slightly slimmer expected profitability on Brazilian real sales.
- Future P/E: target multiple increased from 15.55x to 16.43x, partly offsetting the more conservative operating assumptions.
Have other thoughts on Boa Safra Sementes?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
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.