New Forecasts: Here's What Analysts Think The Future Holds For Irani Papel e Embalagem S.A. (BVMF:RANI3)

Celebrations may be in order for Irani Papel e Embalagem S.A. (BVMF:RANI3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 5.5% to R$6.86 over the past 7 days. Could this big upgrade push the stock even higher?

After this upgrade, Irani Papel e Embalagem's dual analysts are now forecasting revenues of R$1.3b in 2021. This would be a major 22% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$1.1b in 2021. It looks like there's been a clear increase in optimism around Irani Papel e Embalagem, given the nice gain to revenue forecasts.

See our latest analysis for Irani Papel e Embalagem

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 clear from the latest estimates that Irani Papel e Embalagem's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 5.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Irani Papel e Embalagem is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Irani Papel e Embalagem this year. Analysts also expect revenues 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 Irani Papel e Embalagem.

Analysts are clearly in love with Irani Papel e Embalagem at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other concerns we've identified, for free 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 that insiders are buying.

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