New Forecasts: Here's What Analysts Think The Future Holds For CCR S.A. (BVMF:CCRO3)

Shareholders in CCR S.A. (BVMF:CCRO3) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that CCR will make substantially more sales than they'd previously expected.

Following the latest upgrade, CCR's ten analysts currently expect revenues in 2021 to be R$11b, approximately in line with the last 12 months. Per-share earnings are expected to jump 106% to R$0.60. Previously, the analysts had been modelling revenues of R$9.4b and earnings per share (EPS) of R$0.59 in 2021. The most recent forecasts are noticeably more optimistic, with a solid increase in revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for CCR

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of R$17.35, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on CCR, with the most bullish analyst valuing it at R$21.50 and the most bearish at R$12.70 per share. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of CCR'shistorical trends, as the 2.2% annualised revenue growth to the end of 2021 is roughly in line with the 1.8% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.6% per year. So it's pretty clear that CCR is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower 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 CCR.

Analysts are definitely bullish on CCR, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 3 other flags 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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This article by Simply Wall St is general in nature. 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.
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