Earnings Update: Here's Why Analysts Just Lifted Their Norwegian Air Shuttle ASA (OB:NAS) Price Target To kr16.32

Shareholders will be ecstatic, with their stake up 20% over the past week following Norwegian Air Shuttle ASA's (OB:NAS) latest second-quarter results. It was an okay result overall, with revenues coming in at kr10b, roughly what the analysts had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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, Norwegian Air Shuttle's five analysts currently expect revenues in 2025 to be kr37.4b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr37.3b and earnings per share (EPS) of kr1.96 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

View our latest analysis for Norwegian Air Shuttle

Additionally, the consensus price target for Norwegian Air Shuttle rose 10% to kr16.32, showing a clear increase in optimism from the the analysts involved. 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. Currently, the most bullish analyst values Norwegian Air Shuttle at kr19.00 per share, while the most bearish prices it at kr10.90. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Norwegian Air Shuttle's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Norwegian Air Shuttle.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

At least one of Norwegian Air Shuttle's five analysts has provided estimates out to 2027, which can be seen for free on our platform here.

Even so, be aware that Norwegian Air Shuttle is showing 1 warning sign in our investment analysis , you should know about...

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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.