New Forecasts: Here's What Analysts Think The Future Holds For Sparebanken Vest (OB:SVEG)

Sparebanken Vest (OB:SVEG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Sparebanken Vest will make substantially more sales than they'd previously expected.

After this upgrade, Sparebanken Vest's five analysts are now forecasting revenues of kr10b in 2025. This would be a substantial 42% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to dip 4.9% to kr15.53 in the same period. Prior to this update, the analysts had been forecasting revenues of kr9.2b and earnings per share (EPS) of kr15.51 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for Sparebanken Vest

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 Sparebanken Vest's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. 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 2.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sparebanken Vest 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 analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Sparebanken Vest.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Sparebanken Vest analysts - going out to 2026, 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 upgrading 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.