Shareholders in Okeanis Eco Tankers Corp. (OB:OET) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. 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 latest consensus from Okeanis Eco Tankers' solitary analyst is for revenues of US$272m in 2020, which would reflect a huge 113% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 1014% to US$3.93. Previously, the analyst had been modelling revenues of US$226m and earnings per share (EPS) of US$3.23 in 2020. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
See our latest analysis for Okeanis Eco Tankers
Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of US$13.79, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. There are some variant perceptions on Okeanis Eco Tankers, with the most bullish analyst valuing it at US$15.36 and the most bearish at US$12.21 per share. Even so, with a relatively close grouping of analyst estimates, it looks to us as though the analyst is quite confident in their valuations, suggesting that Okeanis Eco Tankers is an easy business to forecast or that the underlying assumptions are knowable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Okeanis Eco Tankers' revenue growth is expected to slow, with forecast 113% increase next year well below the historical 192% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% next year. Even after the forecast slowdown in growth, it seems obvious that Okeanis Eco Tankers is also expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Okeanis Eco Tankers could be a good candidate for more research.
The covering analyst is clearly in love with Okeanis Eco Tankers at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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April 04, 2020 at 01:24PM
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The Okeanis Eco Tankers Corp. (OB:OET) Analyst Just Boosted Their Forecasts By A Notable Amount - Yahoo Finance
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