Analyst Estimates: Here's What Brokers Think Of SpareBank 1 Nord-Norge (OB:NONG) After Its Yearly Report

SpareBank 1 Nord-Norge (OB:NONG) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to kr101 in the week after its latest yearly results. It was a credible result overall, with revenues of kr5.2b and statutory earnings per share of kr11.36 both in line with analyst estimates, showing that SpareBank 1 Nord-Norge is executing in line with expectations. 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.

Check out our latest analysis for SpareBank 1 Nord-Norge

Following the latest results, SpareBank 1 Nord-Norge's four analysts are now forecasting revenues of kr5.78b in 2024. This would be a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.6% to kr12.36. Before this earnings report, the analysts had been forecasting revenues of kr5.58b and earnings per share (EPS) of kr12.43 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of kr114, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SpareBank 1 Nord-Norge analyst has a price target of kr120 per share, while the most pessimistic values it at kr110. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SpareBank 1 Nord-Norge's past performance and to peers in the same industry. The analysts are definitely expecting SpareBank 1 Nord-Norge's growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SpareBank 1 Nord-Norge is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at kr114, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for SpareBank 1 Nord-Norge going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether SpareBank 1 Nord-Norge's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.