New Forecasts: Here's What Analysts Think The Future Holds For Elmera Group ASA (OB:ELMRA)

Elmera Group ASA (OB:ELMRA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 7.3% to kr27.18 over the past 7 days. Could this big upgrade push the stock even higher?

Following the latest upgrade, the current consensus, from the dual analysts covering Elmera Group, is for revenues of kr15b in 2024, which would reflect a sizeable 33% reduction in Elmera Group's sales over the past 12 months. Statutory earnings per share are presumed to bounce 309% to kr2.26. Previously, the analysts had been modelling revenues of kr12b and earnings per share (EPS) of kr2.21 in 2024. The most recent forecasts are noticeably more optimistic, with a great increase in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Elmera Group

Despite these upgrades, the analysts have not made any major changes to their price target of kr20.50, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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. We would highlight that sales are expected to reverse, with a forecast 27% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 36% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.9% annually for the foreseeable future. So it's pretty clear that Elmera Group's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market next year. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Elmera Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.