Rainbows and Unicorns: The Norbit ASA (OB:NORBT) Analyst Just Became A Lot More Optimistic

Norbit ASA (OB:NORBT) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Norbit has also found favour with investors, with the stock up a worthy 18% to kr178 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

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Following the upgrade, the current consensus from Norbit's solitary analyst is for revenues of kr2.6b in 2025 which - if met - would reflect a huge 38% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 39% to kr6.62. Before this latest update, the analyst had been forecasting revenues of kr2.3b and earnings per share (EPS) of kr5.86 in 2025. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Norbit

With these upgrades, we're not surprised to see that the analyst has lifted their price target 38% to kr200 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Norbit's growth to accelerate, with the forecast 53% annualised growth to the end of 2025 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Norbit is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Norbit.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Norbit going out as far as 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.