Bullish: Analysts Just Made A Neat Upgrade To Their Patria Investments Limited (NASDAQ:PAX) 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. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.
Following the upgrade, the latest consensus from Patria Investments' five analysts is for revenues of US$376m in 2023, which would reflect a huge 25% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 60% to US$1.21. Previously, the analysts had been modelling revenues of US$330m and earnings per share (EPS) of US$1.03 in 2023. 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 Patria Investments
Despite these upgrades, the analysts have not made any major changes to their price target of US$19.08, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Patria Investments, with the most bullish analyst valuing it at US$21.50 and the most bearish at US$15.00 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Patria Investments' rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 29% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Patria Investments is expected to grow much faster than its 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Patria Investments could be a good candidate for more research.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Patria Investments analysts - going out to 2025, and you can see them free on our platform here.
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.
