One Analyst Just Downgraded Their Bonheur ASA (OB:BONHR) Forecasts

The analyst covering Bonheur ASA (OB:BONHR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Bonheur from its one analyst is for revenues of kr6.7b in 2021 which, if met, would be a decent 8.6% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 88% to kr3.25. Previously, the analyst had been modelling revenues of kr7.6b and earnings per share (EPS) of kr2.55 in 2021. So we can see that the consensus has become notably more bearish on Bonheur's outlook with these numbers, making a substantial drop in this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for Bonheur

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bonheur's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Bonheur is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.6% annualised growth until the end of 2021. If achieved, this would be a much better result than the 18% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.4% per year. Not only are Bonheur's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Bonheur dropped from profits to a loss this year. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on Bonheur, and their negativity could be grounds for caution.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Bonheur going out as far as 2022, 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 that insiders are buying.

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This article by Simply Wall St is general in nature. 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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