Forecast: Analysts Think Zamp S.A.'s (BVMF:ZAMP3) Business Prospects Have Improved Drastically

Celebrations may be in order for Zamp S.A. (BVMF:ZAMP3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

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After this upgrade, Zamp's four analysts are now forecasting revenues of R$5.0b in 2025. This would be a satisfactory 2.8% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 62% to R$0.18. However, before this estimates update, the consensus had been expecting revenues of R$4.3b and R$0.23 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Zamp

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Zamp's revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zamp.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Zamp is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Zamp's future.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Zamp to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.

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 with high insider ownership.

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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.