Need To Know: Analysts Are Much More Bullish On Norwegian Air Shuttle ASA (OB:NAS) Revenues

Celebrations may be in order for Norwegian Air Shuttle ASA (OB:NAS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Norwegian Air Shuttle from its six analysts is for revenues of kr31b in 2024 which, if met, would be a huge 21% increase on its sales over the past 12 months. Statutory earnings per share are presumed to step up 20% to kr2.00. Prior to this update, the analysts had been forecasting revenues of kr28b and earnings per share (EPS) of kr1.98 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for Norwegian Air Shuttle

Even though revenue forecasts increased, there was no change to the consensus price target of kr19.59, suggesting the analysts are focused on earnings as the driver of value creation.

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. For example, we noticed that Norwegian Air Shuttle's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 21% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 24% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.8% annually. So it looks like Norwegian Air Shuttle is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Norwegian Air Shuttle.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Norwegian Air Shuttle analysts - going out to 2026, 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 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.