Boa Safra Sementes S.A. (BVMF:SOJA3) Analysts Are Reducing Their Forecasts For This Year

One thing we could say about the analysts on Boa Safra Sementes S.A. (BVMF:SOJA3) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Boa Safra Sementes' six analysts is for revenues of R$2.4b in 2024, which would reflect a solid 19% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to crater 33% to R$1.49 in the same period. Before this latest update, the analysts had been forecasting revenues of R$2.6b and earnings per share (EPS) of R$2.66 in 2024. Indeed, we can see that the analysts are a lot more bearish about Boa Safra Sementes' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Boa Safra Sementes

Analysts made no major changes to their price target of R$20.07, suggesting the downgrades are not expected to have a long-term impact on Boa Safra Sementes' valuation.

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 clear from the latest estimates that Boa Safra Sementes' rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 33% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Boa Safra Sementes to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Boa Safra Sementes.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Boa Safra Sementes' business, like concerns around earnings quality. For more information, you can click here to discover this and the 2 other warning signs we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading 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.