Analysts Are Betting On Orora Limited (ASX:ORA) With A Big Upgrade This Week

Shareholders in Orora Limited (ASX:ORA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 4.0% to AU$2.57 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After this upgrade, Orora's seven analysts are now forecasting revenues of AU$5.0b in 2024. This would be a meaningful 17% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing AU$4.3b of revenue in 2024. It looks like there's been a clear increase in optimism around Orora, given the substantial gain in revenue forecasts.

Check out our latest analysis for Orora

We'd point out that there was no major changes to their price target of AU$3.35, suggesting the latest estimates were not enough to shift their view on the value of the business.

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 Orora's growth to accelerate, with the forecast 17% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Orora is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Orora 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 Orora.

Unsatisfied? At least one of Orora's seven analysts has provided estimates out to 2026, which can be seen for free on our platform here.

We also provide an overview of the Orora 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. 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.