New Forecasts: Here's What Analysts Think The Future Holds For SLC Agrícola S.A. (BVMF:SLCE3)

SLC Agrícola S.A. (BVMF:SLCE3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that SLC Agrícola will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on SLC Agrícola too, with the stock up 13% to R$41.59 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from SLC Agrícola's six analysts is for revenues of R$3.8b in 2021, which would reflect a major 36% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 45% to R$3.02. Previously, the analysts had been modelling revenues of R$3.4b and earnings per share (EPS) of R$2.77 in 2021. The forecasts seem more optimistic now, with a nice gain to revenue and a small lift in earnings per share estimates.

View our latest analysis for SLC Agrícola

It will come as no surprise to learn that the analysts have increased their price target for SLC Agrícola 16% to R$36.93 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SLC Agrícola analyst has a price target of R$51.00 per share, while the most pessimistic values it at R$21.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting SLC Agrícola's growth to accelerate, with the forecast 36% growth ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SLC Agrícola to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SLC Agrícola.

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 SLC Agrícola going out to 2022, and you can see them free on our platform here..

We also provide an overview of the SLC Agrícola Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. 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.
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