Analysts Expect Breakeven For Norse Atlantic ASA (OB:NORSE) Before Long

Norse Atlantic ASA (OB:NORSE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Norse Atlantic ASA provides long-haul airline services in Norway, the United Kingdom, rest of Europe, the United States, and internationally. With the latest financial year loss of US$135m and a trailing-twelve-month loss of US$62m, the kr982m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Norse Atlantic's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to some industry analysts covering Norse Atlantic, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$38m in 2026. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 73% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Norse Atlantic given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Norse Atlantic

Before we wrap up, there’s one issue worth mentioning. Norse Atlantic currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Norse Atlantic to cover in one brief article, but the key fundamentals for the company can all be found in one place – Norse Atlantic's company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Norse Atlantic worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Norse Atlantic is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Norse Atlantic’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.