Broker Revenue Forecasts For CSN Mineração S.A. (BVMF:CMIN3) Are Surging Higher

Celebrations may be in order for CSN Mineração S.A. (BVMF:CMIN3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that CSN Mineração will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for CSN Mineração from its seven analysts is for revenues of R$22b in 2022 which, if met, would be a solid 17% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing R$17b of revenue in 2022. It looks like there's been a clear increase in optimism around CSN Mineração, given the sizeable gain to revenue forecasts.

View our latest analysis for CSN Mineração

There was no particular change to the consensus price target of R$7.72, with CSN Mineração's latest outlook seemingly not enough to result in a change of valuation. 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 CSN Mineração, with the most bullish analyst valuing it at R$10.00 and the most bearish at R$5.50 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that CSN Mineração's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 9.8% annually. So it's clear that despite the slowdown in growth, CSN Mineração is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for CSN Mineração this year. They're also forecasting for revenues to perform better than companies in 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 CSN Mineração.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on CSN Mineração that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.