Bouvet ASA (OB:BOUV) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a good week for Bouvet ASA (OB:BOUV) shareholders, because the company has just released its latest third-quarter results, and the shares gained 7.4% to kr74.20. It was a credible result overall, with revenues of kr879m and statutory earnings per share of kr0.75 both in line with analyst estimates, showing that Bouvet is executing in line with expectations. Following the result, the analyst has 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Bouvet

Taking into account the latest results, the current consensus from Bouvet's lone analyst is for revenues of kr4.33b in 2025. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 11% to kr4.07. Before this earnings report, the analyst had been forecasting revenues of kr4.32b and earnings per share (EPS) of kr4.04 in 2025. The consensus analyst doesn't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 23% to kr80.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Bouvet's revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.6% per year. Factoring in the forecast slowdown in growth, it looks like Bouvet is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Bouvet going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Bouvet has 1 warning sign we think 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.