Norrhydro Group Oyj (HEL:NORRH) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders will be ecstatic, with their stake up 32% over the past week following Norrhydro Group Oyj's (HEL:NORRH) latest half-yearly results. Revenues of €13m arrived in line with expectations, although statutory losses per share were €0.04, an impressive 50% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

Check out our latest analysis for Norrhydro Group Oyj

Following the latest results, Norrhydro Group Oyj's sole analyst are now forecasting revenues of €27.7m in 2024. This would be a solid 12% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analyst had been forecasting revenues of €28.4m and losses of €0.09 per share in 2024. So we can see that while the consensus made a small dip in revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

The average price target rose 17% to €2.10, with the analyst clearly having become more optimistic about Norrhydro Group Oyj'sprospects following these results.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Norrhydro Group Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.8% 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 3.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Norrhydro Group Oyj to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their revenue estimates for next year. They also downgraded Norrhydro Group Oyj's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

One Norrhydro Group Oyj broker/analyst has provided estimates out to 2026, which can be seen for free on our platform here.

Even so, be aware that Norrhydro Group Oyj is showing 4 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.

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