Brokers Are Upgrading Their Views On Avance Gas Holding Ltd (OB:AGAS) With These New Forecasts

Avance Gas Holding Ltd (OB:AGAS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the latest upgrade, Avance Gas Holding's four analysts currently expect revenues in 2024 to be US$313m, approximately in line with the last 12 months. Statutory earnings per share are presumed to leap 46% to US$2.60. Before this latest update, the analysts had been forecasting revenues of US$283m and earnings per share (EPS) of US$2.11 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Avance Gas Holding

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.1% to kr151 per share.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Avance Gas Holding's revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 4.0% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Avance Gas Holding is still expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Avance Gas Holding could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning sign with Avance Gas Holding, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.