Analysts Are Betting On OKEA ASA (OB:OKEA) With A Big Upgrade This Week

Celebrations may be in order for OKEA ASA (OB:OKEA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that OKEA will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from OKEA's three analysts is for revenues of kr10b in 2023 which - if met - would reflect a substantial 24% increase on its sales over the past 12 months. Per-share earnings are expected to jump 22% to kr8.53. Previously, the analysts had been modelling revenues of kr9.1b and earnings per share (EPS) of kr7.82 in 2023. The most recent forecasts are noticeably more optimistic, with a solid increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for OKEA

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr46.75, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OKEA's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of OKEA'shistorical trends, as the 54% annualised revenue growth to the end of 2023 is roughly in line with the 46% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 11% annually. So it's clear that not only is revenue growth expected to be maintained, but OKEA is expected to grow meaningfully 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at OKEA.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple OKEA analysts - going out to 2025, 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 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.