Analysts Just Made An Upgrade To Their Petro Rio S.A. (BVMF:PRIO3) Forecasts

Petro Rio S.A. (BVMF:PRIO3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The stock price has risen 6.4% to R$23.69 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Petro Rio's four analysts are now forecasting revenues of R$6.1b in 2022. This would be a notable 16% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$5.5b in 2022. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

Check out our latest analysis for Petro Rio

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. It's pretty clear that there is an expectation that Petro Rio's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 22% growth on an annualised basis. This is compared to a historical growth rate of 47% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 6.1% per year. So it's clear that despite the slowdown in growth, Petro Rio is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Petro Rio.

Need some more information? We have analyst estimates for Petro Rio going out to 2024, 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.