Analysts' Revenue Estimates For Caixa Seguridade Participações S.A. (BVMF:CXSE3) Are Surging Higher

Caixa Seguridade Participações S.A. (BVMF:CXSE3) 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 Caixa Seguridade Participações will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Caixa Seguridade Participações from its twelve analysts is for revenues of R$6.3b in 2025 which, if met, would be a sizeable 29% increase on its sales over the past 12 months. Per-share earnings are expected to leap 24% to R$1.46. Previously, the analysts had been modelling revenues of R$5.7b and earnings per share (EPS) of R$1.44 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Caixa Seguridade Participações

Even though revenue forecasts increased, there was no change to the consensus price target of R$17.18, suggesting the analysts are focused on earnings as the driver of value creation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Caixa Seguridade Participações' past performance and to peers in the same industry. We would highlight that Caixa Seguridade Participações' revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2025 being well below the historical 30% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.2% annually. Even after the forecast slowdown in growth, it seems obvious that Caixa Seguridade Participações is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for next year, and sales are expected to grow faster 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 Caixa Seguridade Participações.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Caixa Seguridade Participações that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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 backed by insiders.

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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.