Broker Revenue Forecasts For Cosmo Pharmaceuticals N.V. (VTX:COPN) Are Surging Higher

Celebrations may be in order for Cosmo Pharmaceuticals N.V. (VTX:COPN) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Cosmo Pharmaceuticals will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Cosmo Pharmaceuticals from its five analysts is for revenues of €210m in 2024 which, if met, would be a sizeable 117% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 16,513% to €11.87. Previously, the analysts had been modelling revenues of €160m and earnings per share (EPS) of €5.41 in 2024. 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.

Check out our latest analysis for Cosmo Pharmaceuticals

It will come as no surprise to learn that the analysts have increased their price target for Cosmo Pharmaceuticals 13% to €92.40 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Cosmo Pharmaceuticals at €113 per share, while the most bearish prices it at €70.79. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Cosmo Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 117% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cosmo Pharmaceuticals is expected to grow much faster than its 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Cosmo Pharmaceuticals.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Cosmo Pharmaceuticals, including the risk of cutting its dividend. You can learn more, and discover the 2 other warning signs we've identified, for 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.