Cambi ASA (OB:CAMBI) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a good week for Cambi ASA (OB:CAMBI) shareholders, because the company has just released its latest full-year results, and the shares gained 3.9% to kr7.27. It was a pretty good result, with revenues of kr440m, and Cambi came in a solid 10% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Cambi

After the latest results, the single analyst covering Cambi are now predicting revenues of kr678.6m in 2023. If met, this would reflect a sizeable 54% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Cambi forecast to report a statutory profit of kr0.38 per share. Before this earnings report, the analyst had been forecasting revenues of kr688.1m and earnings per share (EPS) of kr0.47 in 2023. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 13% to kr9.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. It's clear from the latest estimates that Cambi's rate of growth is expected to accelerate meaningfully, with the forecast 54% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 9.7% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Cambi to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Cambi you should be aware of.

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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.