Downgrade: What You Need To Know About The Latest Romerike Sparebank (OB:ROMER) Forecasts

The analyst covering Romerike Sparebank (OB:ROMER) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the solo analyst covering Romerike Sparebank provided consensus estimates of kr391m revenue in 2025, which would reflect a definite 9.0% decline on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of kr449m in 2025. The consensus view seems to have become more pessimistic on Romerike Sparebank, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Romerike Sparebank

There was no particular change to the consensus price target of kr127, with Romerike Sparebank's latest outlook seemingly not enough to result in a change of valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 7.2% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.3% annually for the foreseeable future. It's pretty clear that Romerike Sparebank's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for Romerike Sparebank next year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Romerike Sparebank going forwards.

Looking for more information? We have forecasts for Romerike Sparebank from one covering analyst, and you can see them 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.