Time To Worry? Analysts Just Downgraded Their Hexagon Purus ASA (OB:HPUR) Outlook

The analysts covering Hexagon Purus ASA (OB:HPUR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Shares are up 8.5% to kr5.99 in the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

After this downgrade, Hexagon Purus' five analysts are now forecasting revenues of kr3.1b in 2025. This would be a major 70% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing kr3.5b of revenue in 2025. The consensus view seems to have become more pessimistic on Hexagon Purus, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Hexagon Purus

Notably, the analysts have cut their price target 6.9% to kr8.43, suggesting concerns around Hexagon Purus' valuation.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 53% growth on an annualised basis. That is in line with its 49% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Hexagon Purus is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. The analysts also expect revenues to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Hexagon Purus' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Hexagon Purus after today.

Want to learn more? At least one of Hexagon Purus' five analysts has provided estimates out to 2026, which can be seen for 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 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.