Here's What Analysts Are Forecasting For TIM S.A. (BVMF:TIMS3) After Its Full-Year Results

It's been a pretty great week for TIM S.A. (BVMF:TIMS3) shareholders, with its shares surging 11% to R$17.30 in the week since its latest annual results. It was a credible result overall, with revenues of R$25b and statutory earnings per share of R$1.30 both in line with analyst estimates, showing that TIM is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for TIM

After the latest results, the eleven analysts covering TIM are now predicting revenues of R$26.7b in 2025. If met, this would reflect a modest 4.9% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of R$26.7b and earnings per share (EPS) of R$1.62 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of R$20.33. 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 TIM analyst has a price target of R$23.00 per share, while the most pessimistic values it at R$16.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await TIM shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that TIM's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 9.5% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% annually. So it's pretty clear that, while TIM's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of TIM's eleven analysts has provided estimates out to 2027, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for TIM that you should be aware of.

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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.