Industry Analysts Just Made A Captivating Upgrade To Their Idorsia Ltd (VTX:IDIA) Revenue Forecasts

Shareholders in Idorsia Ltd (VTX:IDIA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Idorsia's eight analysts is for revenues of CHF272m in 2024, which would reflect a huge 47% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CHF214m in 2024. It looks like there's been a clear increase in optimism around Idorsia, given the sizeable gain to revenue forecasts.

Check out our latest analysis for Idorsia

Notably, the analysts have cut their price target 18% to CHF1.72, suggesting concerns around Idorsia's valuation.

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. The analysts are definitely expecting Idorsia's growth to accelerate, with the forecast 36% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Idorsia is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Idorsia next year. They're also forecasting more rapid revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Idorsia's future valuation. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Idorsia.

Analysts are definitely bullish on Idorsia, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. You can learn more, and discover the 1 other concern we've identified, for 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.