Need To Know: Analysts Are Much More Bullish On Movida Participações S.A. (BVMF:MOVI3) Revenues

Shareholders in Movida Participações S.A. (BVMF:MOVI3) 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 Movida Participações will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 8.0% to R$13.13 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from Movida Participações' eight analysts is for revenues of R$13b in 2023, which would reflect a sizeable 20% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$11b of revenue in 2023. It looks like there's been a clear increase in optimism around Movida Participações, given the solid increase in revenue forecasts.

Check out our latest analysis for Movida Participações

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. It's clear from the latest estimates that Movida Participações' rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 30% p.a. 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 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Movida Participações 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 lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Movida Participações.

Analysts are definitely bullish on Movida Participações, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .

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.