Forecast: Analysts Think Plano & Plano Desenvolvimento Imobiliário S.A.'s (BVMF:PLPL3) Business Prospects Have Improved Drastically

Celebrations may be in order for Plano & Plano Desenvolvimento Imobiliário S.A. (BVMF:PLPL3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The stock price has risen 4.4% to R$13.88 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.

After this upgrade, Plano & Plano Desenvolvimento Imobiliário's six analysts are now forecasting revenues of R$2.7b in 2024. This would be a sizeable 32% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 42% to R$1.93. Previously, the analysts had been modelling revenues of R$2.4b and earnings per share (EPS) of R$1.67 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Plano & Plano Desenvolvimento Imobiliário

It will come as no surprise to learn that the analysts have increased their price target for Plano & Plano Desenvolvimento Imobiliário 6.6% to R$16.20 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Plano & Plano Desenvolvimento Imobiliário's past performance and to peers in the same industry. It's clear from the latest estimates that Plano & Plano Desenvolvimento Imobiliário's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 25% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Plano & Plano Desenvolvimento Imobiliário to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Plano & Plano Desenvolvimento Imobiliário.

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 Plano & Plano Desenvolvimento Imobiliário going out to 2026, 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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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.