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

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

Following the upgrade, the latest consensus from BEWi's three analysts is for revenues of €1.3b in 2023, which would reflect a substantial 34% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 19% to €0.33. Before this latest update, the analysts had been forecasting revenues of €1.2b and earnings per share (EPS) of €0.32 in 2023. The forecasts seem more optimistic now, with a substantial gain in revenue and a modest lift to earnings per share estimates.

See our latest analysis for BEWi

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. We can infer from the latest estimates that forecasts expect a continuation of BEWi'shistorical trends, as the 26% annualised revenue growth to the end of 2023 is roughly in line with the 28% annual revenue growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 0.5% per year. So it's clear that not only is revenue growth expected to be maintained, but BEWi 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 next 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 next year's forecasts, it might be time to take another look at BEWi.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple BEWi analysts - going out to 2024, and you can see them free on our platform here.

You can also see our analysis of BEWi's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.