OKEA ASA's (OB:OKEA) Sole Analyst Just Made A Dazzling Upgrade To Their Forecasts

OKEA ASA (OB:OKEA) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for OKEA from its lone analyst is for revenues of kr8.0b in 2022 which, if met, would be a major 111% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 130% to kr13.37. Prior to this update, the analyst had been forecasting revenues of kr4.4b and earnings per share (EPS) of kr6.16 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.

Check out our latest analysis for OKEA

With these upgrades, we're not surprised to see that the analyst has lifted their price target 71% to kr36.00 per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that OKEA's rate of growth is expected to accelerate meaningfully, with the forecast 111% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 47% 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 1.8% annually. So it's clear with the acceleration in growth, 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 the analyst 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at OKEA.

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.