Analysts' Revenue Estimates For Sinqia S.A. (BVMF:SQIA3) Are Surging Higher

Shareholders in Sinqia S.A. (BVMF:SQIA3) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the five analysts covering Sinqia are now predicting revenues of R$520m in 2022. If met, this would reflect a sizeable 23% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$436m of revenue in 2022. It looks like there's been a clear increase in optimism around Sinqia, given the nice increase in revenue forecasts.

See our latest analysis for Sinqia

We'd point out that there was no major changes to their price target of R$29.67, suggesting the latest estimates were not enough to shift their view on the value of the business. 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 Sinqia analyst has a price target of R$34.00 per share, while the most pessimistic values it at R$26.00. This is a very narrow spread of estimates, implying either that Sinqia is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Sinqia's growth to accelerate, with the forecast 32% annualised growth to the end of 2022 ranking favourably alongside historical growth of 25% 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sinqia to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Sinqia.

Looking for more information? At least one of Sinqia's five analysts has provided estimates out to 2024, which can be seen for 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.