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Vinci Partners Investments Ltd. (NASDAQ:VINP) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
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Following the upgrade, the most recent consensus for Vinci Partners Investments from its four analysts is for revenues of R$1.0b in 2025 which, if met, would be a sizeable 41% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing R$880m of revenue in 2025. It looks like there's been a clear increase in optimism around Vinci Partners Investments, given the decent improvement in revenue forecasts.
Check out our latest analysis for Vinci Partners Investments
We'd point out that there was no major changes to their price target of R$71.80, suggesting the latest estimates were not enough to shift their view on the value of the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Vinci Partners Investments, with the most bullish analyst valuing it at R$76.84 and the most bearish at R$68.30 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Vinci Partners Investments' rate of growth is expected to accelerate meaningfully, with the forecast 59% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. 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 5.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vinci Partners Investments 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 Vinci Partners Investments.