New Forecasts: Here's What Analysts Think The Future Holds For OKEA ASA (OB:OKEA)

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 consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from OKEA's three analysts is for revenues of kr11b in 2023, which would reflect a huge 78% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 84% to kr11.91. Previously, the analysts had been modelling revenues of kr9.0b and earnings per share (EPS) of kr11.91 in 2023. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for OKEA

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. It's clear from the latest estimates that OKEA's rate of growth is expected to accelerate meaningfully, with the forecast 78% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 49% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 10% annually. It seems obvious that as part of the brighter growth outlook, OKEA is expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. 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.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with OKEA, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

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.