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News Flash: Analysts Just Made A Captivating Upgrade To Their Klaveness Combination Carriers ASA (OB:KCC) Forecasts
Shareholders in Klaveness Combination Carriers ASA (OB:KCC) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 11% to kr71.00 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After the upgrade, the consensus from Klaveness Combination Carriers' lone analyst is for revenues of US$165m in 2022, which would reflect a sizeable 20% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to jump 121% to US$1.35. Before this latest update, the analyst had been forecasting revenues of US$136m and earnings per share (EPS) of US$0.80 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Klaveness Combination Carriers
It will come as no surprise to learn that the analyst has increased their price target for Klaveness Combination Carriers 35% to US$11.22 on the back of these upgrades.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 26% by the end of 2022. This indicates a significant reduction from annual growth of 17% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.5% annually for the foreseeable future. It's pretty clear that Klaveness Combination Carriers' revenues are expected to perform substantially worse than the wider 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, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Klaveness Combination Carriers.
The covering analyst is clearly in love with Klaveness Combination Carriers at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 3 other risks we've identified, for 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 that insiders are buying.
Valuation is complex, but we're here to simplify it.
Discover if Klaveness Combination Carriers might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About OB:KCC
Klaveness Combination Carriers
Owns and operates combination carriers for the dry bulk shipping and product tanker industries in the Middle East, Australia, Oceania, North East Asia, South America, North America, Europe, Southeast Asia, and South Asia.
Good value with proven track record and pays a dividend.