Rainbows and Unicorns: The Ramada Investimentos e Industria, S.A. (ELI:RAM) Analyst Just Became A Lot More Optimistic

Ramada Investimentos e Industria, S.A. (ELI:RAM) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's 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.

After the upgrade, the solitary analyst covering Ramada Investimentos e Industria is now predicting revenues of €118m in 2021. If met, this would reflect a notable 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 2.7% to €0.28. Prior to this update, the analyst had been forecasting revenues of €102m and earnings per share (EPS) of €0.18 in 2021. 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.

Check out our latest analysis for Ramada Investimentos e Industria

It will come as no surprise to learn that the analyst has increased their price target for Ramada Investimentos e Industria 8.3% to €6.50 on the back of these upgrades.

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. One thing stands out from these estimates, which is that Ramada Investimentos e Industria is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2021. If achieved, this would be a much better result than the 3.0% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.4% annually. Not only are Ramada Investimentos e Industria's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Ramada Investimentos e Industria.

The covering analyst is definitely bullish on Ramada Investimentos e Industria, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. You can learn more, and discover the 3 other concerns we've identified, for free on our platform here.

We also provide an overview of the Ramada Investimentos e Industria Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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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