Cause For Concern? One Analyst Thinks Western Bulk Chartering AS' (OB:WEST) Revenues Are Under Threat

The latest analyst coverage could presage a bad day for Western Bulk Chartering AS (OB:WEST), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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Following the latest downgrade, the current consensus, from the sole analyst covering Western Bulk Chartering, is for revenues of US$24m in 2025, which would reflect a substantial 98% reduction in Western Bulk Chartering's sales over the past 12 months. Before this latest update, the analyst had been forecasting revenues of US$36m and earnings per share (EPS) of US$0.36 in 2025. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a earnings per share numbers as well.

Check out our latest analysis for Western Bulk Chartering

Notably, the analyst has cut their price target 39% to kr15.30, suggesting concerns around Western Bulk Chartering's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 98% by the end of 2025. This indicates a significant reduction from annual growth of 6.0% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.9% per year. The forecasts do look bearish for Western Bulk Chartering, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Western Bulk Chartering revenue is expected to perform worse than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Western Bulk Chartering's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Western Bulk Chartering going forwards.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Western Bulk Chartering going out as far as 2027, and you can see them free on our platform 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.