Analysts Just Made A Substantial Upgrade To Their EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3) Forecasts

Shareholders in EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The stock price has risen 8.6% to R$7.70 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the latest upgrade, the six analysts covering EcoRodovias Infraestrutura e Logística provided consensus estimates of R$8.0b revenue in 2024, which would reflect an uneasy 19% decline on its sales over the past 12 months. Statutory earnings per share are presumed to expand 16% to R$1.40. Prior to this update, the analysts had been forecasting revenues of R$7.0b and earnings per share (EPS) of R$1.24 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for EcoRodovias Infraestrutura e Logística

Despite these upgrades, the consensus price target fell 7.0% to R$10.22, perhaps signalling that the uplift in performance is not expected to last.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EcoRodovias Infraestrutura e Logística's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 34% by the end of 2024. This indicates a significant reduction from annual growth of 21% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.8% per year. It's pretty clear that EcoRodovias Infraestrutura e Logística's revenues are expected to perform substantially worse than the wider 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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, EcoRodovias Infraestrutura e Logística could be one for the watch list.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple EcoRodovias Infraestrutura e Logística analysts - going out to 2026, and you can see them 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 backed by insiders.

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