Brokers Are Upgrading Their Views On Zaptec ASA (OB:ZAP) With These New Forecasts

Shareholders in Zaptec ASA (OB:ZAP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 6.3% over the past week, closing at kr9.42. Could this big upgrade push the stock even higher?

Following the upgrade, the most recent consensus for Zaptec from its dual analysts is for revenues of kr1.8b in 2025 which, if met, would be a major 33% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of kr1.97 per share next year. Prior to this update, the analysts had been forecasting revenues of kr1.6b and earnings per share (EPS) of kr0.96 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Zaptec

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. We would highlight that Zaptec's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2025 being well below the historical 44% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.1% per year. So it's pretty clear that, while Zaptec's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Zaptec.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Zaptec going out as far as 2026, and you can see them 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 upgrading 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.