Analysts Are Updating Their Borregaard ASA (OB:BRG) Estimates After Its Second-Quarter Results

Shareholders might have noticed that Borregaard ASA (OB:BRG) filed its quarterly result this time last week. The early response was not positive, with shares down 3.9% to kr196 in the past week. Borregaard beat revenue expectations by 3.9%, at kr2.0b. Statutory earnings per share (EPS) came in at kr2.56, some 2.3% short of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Borregaard's five analysts are now forecasting revenues of kr7.95b in 2025. This would be an okay 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to kr9.92. Before this earnings report, the analysts had been forecasting revenues of kr7.87b and earnings per share (EPS) of kr9.72 in 2025. So the consensus seems to have become somewhat more optimistic on Borregaard's earnings potential following these results.

See our latest analysis for Borregaard

The consensus price target was unchanged at kr221, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Borregaard analyst has a price target of kr252 per share, while the most pessimistic values it at kr199. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 pretty clear that there is an expectation that Borregaard's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it looks like Borregaard is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Borregaard's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr221, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Borregaard going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Borregaard you should be aware of.

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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.