Analysts Just Made A Massive Upgrade To Their Hafnia Limited (OB:HAFNI) Forecasts

Shareholders in Hafnia Limited (OB:HAFNI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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. Investors have been pretty optimistic on Hafnia too, with the stock up 13% to kr40.05 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Hafnia's three analysts is for revenues of US$1.4b in 2022 which - if met - would reflect a major 57% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$1.61 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of US$1.1b and earnings per share (EPS) of US$0.87 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Hafnia

With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to kr49.33 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hafnia at kr60.00 per share, while the most bearish prices it at kr39.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Hafnia's growth to accelerate, with the forecast 83% annualised growth to the end of 2022 ranking favourably alongside historical growth of 15% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 15% per year. It seems obvious that as part of the brighter growth outlook, Hafnia is 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 this year. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are 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, Hafnia could be worth investigating further.

Analysts are definitely bullish on Hafnia, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other warning sign we've identified, for 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.