Need To Know: Analysts Are Much More Bullish On Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) Revenues

Shareholders in Ambipar Participações e Empreendimentos S.A. (BVMF:AMBP3) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Ambipar Participações e Empreendimentos will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 11% to R$40.18 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After this upgrade, Ambipar Participações e Empreendimentos' three analysts are now forecasting revenues of R$1.2b in 2021. This would be a sizeable 44% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 92% to R$1.04. Before this latest update, the analysts had been forecasting revenues of R$958m and earnings per share (EPS) of R$0.99 in 2021. The forecasts seem more optimistic now, with a considerable lift to revenue and a small lift in earnings per share estimates.

View our latest analysis for Ambipar Participações e Empreendimentos

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.6% to R$36.50 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ambipar Participações e Empreendimentos at R$43.00 per share, while the most bearish prices it at R$34.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Ambipar Participações e Empreendimentos'historical trends, as the 63% annualised revenue growth to the end of 2021 is roughly in line with the 58% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. So although Ambipar Participações e Empreendimentos is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Ambipar Participações e Empreendimentos.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Ambipar Participações e Empreendimentos going out to 2025, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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