HydrogenPro ASA (OB:HYPRO) Just Reported And Analysts Have Been Lifting Their Price Targets

Shareholders of HydrogenPro ASA (OB:HYPRO) will be pleased this week, given that the stock price is up 14% to kr13.64 following its latest yearly results. Revenues beat expectations, with kr568m in revenue being 14% above estimates. The company still lost kr1.05 per share, tracking roughly in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for HydrogenPro

After the latest results, the dual analysts covering HydrogenPro are now predicting revenues of kr621.5m in 2024. If met, this would reflect a meaningful 9.4% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching kr1.26 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr698.8m and losses of kr1.40 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

There was a decent 5.3% increase in the price target to kr36.05, with the analysts clearly signalling that the expected reduction in losses is a positive, despite a weaker revenue outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that HydrogenPro's revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2024 being well below the historical 63% p.a. growth over the last five years. Compare this to the 17 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while HydrogenPro's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for HydrogenPro that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.