New Forecasts: Here's What Analysts Think The Future Holds For Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3)

Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the nine analysts covering Vamos Locação de Caminhões Máquinas e Equipamentos are now predicting revenues of R$8.1b in 2023. If met, this would reflect a substantial 65% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$7.1b in 2023. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

View our latest analysis for Vamos Locação de Caminhões Máquinas e Equipamentos

We'd point out that there was no major changes to their price target of R$21.13, suggesting the latest estimates were not enough to shift their view on the value of the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Vamos Locação de Caminhões Máquinas e Equipamentos analyst has a price target of R$27.40 per share, while the most pessimistic values it at R$18.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that Vamos Locação de Caminhões Máquinas e Equipamentos' rate of growth is expected to accelerate meaningfully, with the forecast 65% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 41% 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 29% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vamos Locação de Caminhões Máquinas e Equipamentos to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Vamos Locação de Caminhões Máquinas e Equipamentos this year. They're also forecasting more rapid revenue growth 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 Vamos Locação de Caminhões Máquinas e Equipamentos.

Analysts are definitely bullish on Vamos Locação de Caminhões Máquinas e Equipamentos, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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. 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.