Industry Analysts Just Made A Substantial Upgrade To Their Vale S.A. (BVMF:VALE3) Revenue Forecasts

Vale S.A. (BVMF:VALE3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Vale will make substantially more sales than they'd previously expected.

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After this upgrade, Vale's 20 analysts are now forecasting revenues of R$231b in 2025. This would be a meaningful 9.1% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$208b of revenue in 2025. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

Check out our latest analysis for Vale

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vale's past performance and to peers in the same industry. The analysts are definitely expecting Vale's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.08% per annum 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 2.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vale is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Vale this year. They're also forecasting more rapid revenue growth 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 Vale.

Want to learn more? At least one of Vale's 20 analysts has provided estimates out to 2027, which can be seen for free on our platform here.

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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.