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Analyst Estimates: Here's What Brokers Think Of Cury Construtora e Incorporadora S.A. (BVMF:CURY3) After Its Third-Quarter Report
Investors in Cury Construtora e Incorporadora S.A. (BVMF:CURY3) had a good week, as its shares rose 6.3% to close at R$28.32 following the release of its quarterly results. It was a workmanlike result, with revenues of R$1.8b coming in 3.4% ahead of expectations, and statutory earnings per share of R$1.02, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Cury Construtora e Incorporadora's eleven analysts are now forecasting revenues of R$7.91b in 2027. This would be a major 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to R$4.67. In the lead-up to this report, the analysts had been modelling revenues of R$7.91b and earnings per share (EPS) of R$4.80 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for Cury Construtora e Incorporadora
It might be a surprise to learn that the consensus price target was broadly unchanged at R$44.83, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Cury Construtora e Incorporadora analyst has a price target of R$54.00 per share, while the most pessimistic values it at R$37.00. 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.
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. We would highlight that Cury Construtora e Incorporadora's revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2027 being well below the historical 28% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. Even after the forecast slowdown in growth, it seems obvious that Cury Construtora e Incorporadora is also expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cury Construtora e Incorporadora. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Cury Construtora e Incorporadora analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Cury Construtora e Incorporadora that we have uncovered.
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