Bullish: This Analyst Just Lifted Their Orrön Energy AB (publ) (STO:ORRON) Outlook For This Year

Celebrations may be in order for Orrön Energy AB (publ) (STO:ORRON) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Orrön Energy from its one analyst is for revenues of €41m in 2025 which, if met, would be a meaningful 11% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 14% per share from last year to €0.04 per share. Yet before this consensus update, the analyst had been forecasting revenues of €33m and losses of €0.05 per share in 2025. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for Orrön Energy

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Orrön Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2025. If achieved, this would be a much better result than the 54% annual decline 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 0.6% annually. Not only are Orrön Energy's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around Orrön Energy's prospects. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Orrön Energy.

The covering analyst is clearly in love with Orrön Energy at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. You can learn more, and discover the 1 other warning sign we've identified, for 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 backed by insiders.

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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.