This Just In: Analysts Are Boosting Their Neuren Pharmaceuticals Limited (ASX:NEU) Outlook for This Year

Neuren Pharmaceuticals Limited (ASX:NEU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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. Investor sentiment seems to be improving too, with the share price up 7.8% to AU$7.72 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from Neuren Pharmaceuticals' four analysts is for revenues of AU$99m in 2023 which - if met - would reflect a huge increase on its sales over the past 12 months. Per-share earnings are expected to bounce 68,534% to AU$1.00. Prior to this update, the analysts had been forecasting revenues of AU$86m and earnings per share (EPS) of AU$0.52 in 2023. 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.

View our latest analysis for Neuren Pharmaceuticals

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Neuren Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Neuren Pharmaceuticals to grow 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Neuren Pharmaceuticals.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.