Analysts Are Betting On Borregaard ASA (OB:BRG) With A Big Upgrade This Week

Shareholders in Borregaard ASA (OB:BRG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Borregaard will make substantially more sales than they'd previously expected.

After this upgrade, Borregaard's four analysts are now forecasting revenues of kr6.6b in 2022. This would be a notable 9.2% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing kr5.9b of revenue in 2022. It looks like there's been a clear increase in optimism around Borregaard, given the decent improvement in revenue forecasts.

Check out our latest analysis for Borregaard

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. The analysts are definitely expecting Borregaard's growth to accelerate, with the forecast 12% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.3% per year. It seems obvious that as part of the brighter growth outlook, Borregaard is expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Borregaard this year. They're also forecasting for revenues to perform better than companies in the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Borregaard.

Better yet, our automated discounted cash flow calculation (DCF) suggests Borregaard could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.