Cambi ASA (OB:CAMBI) Released Earnings Last Week And Analysts Lifted Their Price Target To kr20.00

Shareholders might have noticed that Cambi ASA (OB:CAMBI) filed its quarterly result this time last week. The early response was not positive, with shares down 6.7% to kr14.55 in the past week. It was a negative result overall, with revenues coming in 11% less than what the analyst expected, at kr216m. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Cambi

After the latest results, the one analyst covering Cambi are now predicting revenues of kr1.04b in 2024. If met, this would reflect a reasonable 5.9% improvement in revenue compared to the last 12 months. Before this earnings report, the analyst had been forecasting revenues of kr1.02b and earnings per share (EPS) of kr1.00 in 2024. What's really interesting is that while the consensus made a modest lift to revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

Additionally, the consensus price target for Cambi rose 67% to kr20.00, showing a clear increase in optimism from the the analyst involved.

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 pretty clear that there is an expectation that Cambi's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.0% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cambi is also expected to grow slower than other industry participants.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Cambi next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

We have estimates for Cambi from one covering analyst, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Cambi that we have uncovered.

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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.