Analysts have revised their price target for Melnick Desenvolvimento Imobiliário downward from R$6.55 to R$5.83, citing concerns over declining revenue growth and profit margins. They also noted an increased discount rate and changes in future price-to-earnings expectations.
Valuation Changes
- The Fair Value Estimate has decreased from R$6.55 to R$5.83, indicating a lower perceived intrinsic value.
- The Discount Rate has risen from 21.20% to 23.15%, reflecting greater perceived risk in the company’s future cash flows.
- The Revenue Growth projection shifted from a positive 17.82% to -1.73%, representing a significant reduction in expected future growth.
- The Net Profit Margin estimate has fallen from 26.44% to 14.47%, suggesting weaker profitability expectations.
- The Future P/E Ratio has increased from 5.45x to 13.81x, implying that shares are expected to trade at a higher earnings multiple going forward.
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