Borregaard ASA (OB:BRG) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Borregaard ASA (OB:BRG) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.3% to hit kr2.0b. Statutory earnings per share (EPS) came in at kr2.52, some 4.8% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Borregaard from four analysts is for revenues of kr8.03b in 2025. If met, it would imply a reasonable 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 11% to kr9.70. In the lead-up to this report, the analysts had been modelling revenues of kr8.09b and earnings per share (EPS) of kr9.98 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Borregaard

It might be a surprise to learn that the consensus price target was broadly unchanged at kr229, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Borregaard, with the most bullish analyst valuing it at kr252 and the most bearish at kr205 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. 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 6.2% growth on an annualised basis. This is compared to a historical growth rate of 9.0% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% annually. So it's pretty clear that, while Borregaard's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Borregaard analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Borregaard's balance sheet, and whether we think Borregaard is carrying too much debt, for free on our platform here.

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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.