Industry Analysts Just Made A Captivating Upgrade To Their Patria Investments Limited (NASDAQ:PAX) Revenue Forecasts

Celebrations may be in order for Patria Investments Limited (NASDAQ:PAX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Patria Investments from its seven analysts is for revenues of US$367m in 2023 which, if met, would be a substantial 71% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$309m of revenue in 2023. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

Check out our latest analysis for Patria Investments

We'd point out that there was no major changes to their price target of US$19.27, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Patria Investments, with the most bullish analyst valuing it at US$21.17 and the most bearish at US$17.00 per share. This is a very narrow spread of estimates, implying either that Patria Investments is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The analysts are definitely expecting Patria Investments' growth to accelerate, with the forecast 54% annualised growth to the end of 2023 ranking favourably alongside historical growth of 28% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Patria Investments to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Patria Investments next year. The analysts also expect revenues to grow faster 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 Patria Investments.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Patria Investments, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs 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.