News Flash: Analysts Just Made A Notable Upgrade To Their Nordisk Bergteknik AB (publ) (STO:NORB B) Forecasts

Celebrations may be in order for Nordisk Bergteknik AB (publ) (STO:NORB B) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Nordisk Bergteknik will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Nordisk Bergteknik's two analysts is for revenues of kr3.3b in 2022, which would reflect a sizeable 24% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 115% to kr2.64. Prior to this update, the analysts had been forecasting revenues of kr2.9b and earnings per share (EPS) of kr2.43 in 2022. The forecasts seem more optimistic now, with a nice gain to revenue and a slight bump in earnings per share estimates.

See our latest analysis for Nordisk Bergteknik

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.0% to kr47.00 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Nordisk Bergteknik at kr49.00 per share, while the most bearish prices it at kr41.00. This is a very narrow spread of estimates, implying either that Nordisk Bergteknik is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 53% growth on an annualised basis. That is in line with its 50% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.5% per year. So it's pretty clear that Nordisk Bergteknik is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Nordisk Bergteknik.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Nordisk Bergteknik going out as far as 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.