Industry Analysts Just Made A Meaningful Upgrade To Their Enauta Participações S.A. (BVMF:ENAT3) Revenue Forecasts

Shareholders in Enauta Participações S.A. (BVMF:ENAT3) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Enauta Participações from its five analysts is for revenues of R$2.4b in 2023 which, if met, would be a substantial 22% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$2.2b in 2023. It looks like there's been a clear increase in optimism around Enauta Participações, given the nice gain to revenue forecasts.

View our latest analysis for Enauta Participações

We'd point out that there was no major changes to their price target of R$18.69, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. There are some variant perceptions on Enauta Participações, with the most bullish analyst valuing it at R$26.00 and the most bearish at R$13.80 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 31% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 2.6% per year. So it's clear that not only is revenue growth expected to be maintained, but Enauta Participações is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Enauta Participações this year. The analysts also expect revenues to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Enauta Participações.

Analysts are definitely bullish on Enauta Participações, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. 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.