Need To Know: Analysts Are Much More Bullish On Neuren Pharmaceuticals Limited (ASX:NEU) Revenues

Neuren Pharmaceuticals Limited (ASX:NEU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Neuren Pharmaceuticals' five analysts is for revenues of AU$248m in 2023, which would reflect a huge 217% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 253% to AU$1.53. Previously, the analysts had been modelling revenues of AU$200m and earnings per share (EPS) of AU$1.44 in 2023. Sentiment certainly seems to have improved in recent times, with a considerable lift to revenue and a small lift in earnings per share estimates.

View our latest analysis for Neuren Pharmaceuticals

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of AU$16.66, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. It's clear from the latest estimates that Neuren Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 9x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 51% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.2% per year. So it's clear with the acceleration in growth, Neuren Pharmaceuticals is expected to grow meaningfully faster than the wider 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Neuren Pharmaceuticals.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Neuren Pharmaceuticals going out to 2025, 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.