Growth Investors: Industry Analysts Just Upgraded Their Banco do Brasil S.A. (BVMF:BBAS3) Revenue Forecasts By 13%

Banco do Brasil S.A. (BVMF:BBAS3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

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Following the upgrade, the latest consensus from Banco do Brasil's twelve analysts is for revenues of R$114b in 2025, which would reflect a huge 38% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$101b of revenue in 2025. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

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We'd point out that there was no major changes to their price target of R$26.25, suggesting the latest estimates were not enough to shift their view on the value of the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Banco do Brasil's rate of growth is expected to accelerate meaningfully, with the forecast 89% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Banco do Brasil is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Banco do Brasil this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Banco do Brasil.

Of course, there's always more to the story. We have analyst estimates for Banco do Brasil going out to 2027, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.