This Cambi ASA (OB:CAMBI) Analyst Is Way More Bearish Than They Used To Be

Today is shaping up negative for Cambi ASA (OB:CAMBI) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following this downgrade, Cambi's one analyst are forecasting 2022 revenues to be kr454m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to plunge 41% to kr0.064 in the same period. Prior to this update, the analyst had been forecasting revenues of kr510m and earnings per share (EPS) of kr0.20 in 2022. Indeed, we can see that the analyst is a lot more bearish about Cambi's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Cambi

It'll come as no surprise then, to learn that the analyst has cut their price target 14% to kr12.00.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 1.0% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 13% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 33% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Cambi is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Cambi. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Cambi's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Cambi.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Cambi going out as far as 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.