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RENT3 Future Return Potential Looks Stronger As Risk Perception Eases

Digital Rental And Latin America Urbanization Will Shape Shared Mobility

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RENT3
AnalystHighTarget
Not Invested
Published 20 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 3.93%
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AnalystHighTarget's Fair Value
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1Y
45.3%
7D
0.7%

Narrative Update on Localiza Rent a Car

Analysts have raised their price target for Localiza Rent a Car by approximately R$2.60. This adjustment reflects slightly lower perceived risk, stable revenue growth expectations, marginally higher projected profit margins, and a modestly cheaper anticipated future valuation multiple.

What's in the News

  • A special and extraordinary shareholders meeting is scheduled for December 29, 2025, to be held exclusively remotely in Brazil, signaling upcoming corporate governance decisions and potential strategic resolutions (company filing)

Valuation Changes

  • Fair Value has risen slightly from R$66.00 to approximately R$68.60 per share, implying a modest upward revision in intrinsic valuation.
  • Discount Rate has fallen slightly from about 23.52 percent to 22.89 percent, reflecting a small reduction in perceived risk.
  • Revenue Growth expectations are essentially unchanged, edging down marginally from 14.16 percent to 14.14 percent per year.
  • Net Profit Margin has increased slightly from around 12.22 percent to 12.66 percent, indicating a modest improvement in expected profitability.
  • Future P/E has declined slightly from 17.91x to about 17.57x, suggesting a marginally cheaper anticipated valuation multiple.

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Disclaimer

AnalystHighTarget 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 AnalystHighTarget 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 AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.