News Flash: Analysts Just Made A Sizeable Upgrade To Their Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) Forecasts

Celebrations may be in order for Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Orizon Valorização de Resíduos will make substantially more sales than they'd previously expected. The stock price has risen 5.7% to R$31.29 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from Orizon Valorização de Resíduos' two analysts is for revenues of R$567m in 2022 which - if met - would reflect a major 48% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing R$495m of revenue in 2022. It looks like there's been a clear increase in optimism around Orizon Valorização de Resíduos, given the nice increase in revenue forecasts.

See our latest analysis for Orizon Valorização de Resíduos

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. The analysts are definitely expecting Orizon Valorização de Resíduos' growth to accelerate, with the forecast 37% annualised growth to the end of 2022 ranking favourably alongside historical growth of 9.0% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 24% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Orizon Valorização de Resíduos is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Orizon Valorização de Resíduos.

Analysts are clearly in love with Orizon Valorização de Resíduos at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. You can learn more, and discover the 1 other risk we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.