This Western Bulk Chartering AS (OB:WEST) Analyst Is Way More Bearish Than They Used To Be
One thing we could say about the covering analyst on Western Bulk Chartering AS (OB:WEST) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.
After the downgrade, the consensus from Western Bulk Chartering's solo analyst is for revenues of US$24m in 2026, which would reflect a stressful 98% decline in sales compared to the last year of performance. Per-share earnings are expected to grow 15% to US$0.03. Previously, the analyst had been modelling revenues of US$30m and earnings per share (EPS) of US$0.22 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.
See our latest analysis for Western Bulk Chartering
The average price target climbed 13% to kr21.90 despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.
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. One more thing stood out to us about these estimates, and it's the idea that Western Bulk Chartering's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 100% to the end of 2026. This tops off a historical decline of 6.5% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 0.6% annually. So it's pretty clear that Western Bulk Chartering sales are expected to decline at a faster rate than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Western Bulk Chartering. 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 rising price target is a puzzle, but still - with a serious cut to this year's outlook, we wouldn't be surprised if investors were a bit wary of Western Bulk Chartering.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Western Bulk Chartering going out as far as 2028, 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.