Upgrade: Analysts Just Made A Substantial Increase To Their Himalaya Shipping Ltd. (OB:HSHP) Forecasts

Celebrations may be in order for Himalaya Shipping Ltd. (OB:HSHP) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 4.9% over the past week, closing at kr80.80. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the four analysts covering Himalaya Shipping are now predicting revenues of US$132m in 2024. If met, this would reflect a huge 260% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 3,077% to US$1.10. Previously, the analysts had been modelling revenues of US$119m and earnings per share (EPS) of US$0.96 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Himalaya Shipping

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$7.97, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Himalaya Shipping at US$9.52 per share, while the most bearish prices it at US$5.69. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Himalaya Shipping.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning sign with Himalaya Shipping, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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.