Growth Investors: Industry Analysts Just Upgraded Their Grieg Seafood ASA (OB:GSF) Revenue Forecasts By 16%

Grieg Seafood ASA (OB:GSF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Grieg Seafood will make substantially more sales than they'd previously expected.

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Following the latest upgrade, the current consensus, from the four analysts covering Grieg Seafood, is for revenues of kr5.2b in 2025, which would reflect a concerning 33% reduction in Grieg Seafood's sales over the past 12 months. Losses are predicted to fall substantially, shrinking 86% to kr3.37 per share. Yet before this consensus update, the analysts had been forecasting revenues of kr4.5b and losses of kr3.45 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Grieg Seafood

There was no major change to the consensus price target of kr83.00, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

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. We would highlight that sales are expected to reverse, with a forecast 54% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Grieg Seafood is expected to lag the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Grieg Seafood's prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Grieg Seafood.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Grieg Seafood analysts - going out to 2027, 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 with high insider ownership.

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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.