News Flash: Analysts Just Made A Substantial Upgrade To Their Três Tentos Agroindustrial S/A (BVMF:TTEN3) Forecasts

Três Tentos Agroindustrial S/A (BVMF:TTEN3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 4.5% over the past week, closing at R$12.62. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from Três Tentos Agroindustrial S/A's four analysts is for revenues of R$10b in 2023 which - if met - would reflect a major 48% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$9.2b in 2023. It looks like there's been a clear increase in optimism around Três Tentos Agroindustrial S/A, given the nice increase in revenue forecasts.

View our latest analysis for Três Tentos Agroindustrial S/A

We'd point out that there was no major changes to their price target of R$17.00, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. There are some variant perceptions on Três Tentos Agroindustrial S/A, with the most bullish analyst valuing it at R$19.00 and the most bearish at R$15.00 per share. This is a very narrow spread of estimates, implying either that Três Tentos Agroindustrial S/A is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Três Tentos Agroindustrial S/A's growth to accelerate, with the forecast 48% annualised growth to the end of 2023 ranking favourably alongside historical growth of 36% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Três Tentos Agroindustrial S/A is expected to grow much faster than its 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 grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Três Tentos Agroindustrial S/A.

Analysts are clearly in love with Três Tentos Agroindustrial S/A at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

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.