One Ice Fish Farm AS (OB:IFISH) Analyst Has Been Cutting Their Forecasts

Today is shaping up negative for Ice Fish Farm AS (OB:IFISH) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the solo analyst covering Ice Fish Farm is now predicting revenues of kr563m in 2022. If met, this would reflect a huge 75% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of kr627m in 2022. The consensus view seems to have become more pessimistic on Ice Fish Farm, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Ice Fish Farm

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Ice Fish Farm's rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 12% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ice Fish Farm is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for next year. The analyst also expects revenues to grow faster than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on Ice Fish Farm, and their negativity could be grounds for caution.

That said, this broker might have good reason to be negative on Ice Fish Farm, given concerns around earnings quality. For more information, you can click here to discover 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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.

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