Analysts Just Made An Upgrade To Their Aliansce Sonae Shopping Centers S.A. (BVMF:ALSO3) Forecasts

Aliansce Sonae Shopping Centers S.A. (BVMF:ALSO3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After the upgrade, the six analysts covering Aliansce Sonae Shopping Centers are now predicting revenues of R$2.7b in 2023. If met, this would reflect a huge 135% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 15% to R$1.25. Before this latest update, the analysts had been forecasting revenues of R$2.5b and earnings per share (EPS) of R$0.88 in 2023. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.

View our latest analysis for Aliansce Sonae Shopping Centers

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.1% to R$26.42 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Aliansce Sonae Shopping Centers analyst has a price target of R$30.00 per share, while the most pessimistic values it at R$20.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 Aliansce Sonae Shopping Centers' rate of growth is expected to accelerate meaningfully, with the forecast 98% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aliansce Sonae Shopping Centers 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 upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Aliansce Sonae Shopping Centers could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Aliansce Sonae Shopping Centers going out to 2025, and you can see them free 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.