This Analyst Just Made An Incredible Upgrade To Their Okeanis Eco Tankers Corp. (OB:OET) Earnings Forecasts

Okeanis Eco Tankers Corp. (OB:OET) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Okeanis Eco Tankers' solo analyst is now forecasting revenues of US$291m in 2023. This would be a huge 48% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 295% to US$4.99. Before this latest update, the analyst had been forecasting revenues of US$228m and earnings per share (EPS) of US$3.13 in 2023. 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.

Our analysis indicates that OET is potentially undervalued!

With these upgrades, we're not surprised to see that the analyst has lifted their price target 19% to US$22.60 per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Okeanis Eco Tankers analyst has a price target of US$206 per share, while the most pessimistic values it at US$184. This is a fairly broad spread of estimates, suggesting that the analyst is forecasting a wide range of possible outcomes for the business.

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. One thing stands out from these estimates, which is that Okeanis Eco Tankers is forecast to grow faster in the future than it has in the past, with revenues expected to display 37% annualised growth until the end of 2023. If achieved, this would be a much better result than the 7.9% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to decline 9.0% per year. So it's pretty clear that Okeanis Eco Tankers is expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, they 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 and a rising price target, it might be time to take another look at Okeanis Eco Tankers.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, 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 upgrading their estimates. So you may also wish to search this free list of stocks 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.