Need To Know: One Analyst Is Much More Bullish On Aasen Sparebank (OB:AASB) Revenues

Aasen Sparebank (OB:AASB) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Aasen Sparebank from its lone analyst is for revenues of kr161m in 2023 which, if met, would be a substantial 30% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 88% to kr12.41. Prior to this update, the analyst had been forecasting revenues of kr135m and earnings per share (EPS) of kr11.30 in 2023. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Aasen Sparebank

Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of kr128, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aasen Sparebank's past performance and to peers in the same industry. The analyst is definitely expecting Aasen Sparebank's growth to accelerate, with the forecast 42% annualised growth to the end of 2023 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aasen Sparebank is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Aasen Sparebank.

The covering analyst is definitely bullish on Aasen Sparebank, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other concerns we've identified, for 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.