AnaptysBio, Inc. (NASDAQ:ANAB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from AnaptysBio's ten analysts is for revenues of US$41m in 2024, which would reflect a substantial 80% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$5.90 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$36m and losses of US$6.02 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
There was no major change to the consensus price target of US$43.78, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AnaptysBio's past performance and to peers in the same industry. One thing stands out from these estimates, which is that AnaptysBio is forecast to grow faster in the future than it has in the past, with revenues expected to display 119% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.5% 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 18% annually. Not only are AnaptysBio's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting AnaptysBio is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at AnaptysBio.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential concerns with AnaptysBio, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 4 other concerns we've identified .
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