Growth Investors: Industry Analysts Just Upgraded Their Keymed Biosciences Inc. (HKG:2162) Revenue Forecasts By 11%

Celebrations may be in order for Keymed Biosciences Inc. (HKG:2162) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Keymed Biosciences too, with the stock up 18% to HK$45.00 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the eleven analysts covering Keymed Biosciences are now predicting revenues of CN¥652m in 2025. If met, this would reflect a major 52% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching CN¥2.66 per share. Yet before this consensus update, the analysts had been forecasting revenues of CN¥586m and losses of CN¥2.77 per share in 2025. 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.

View our latest analysis for Keymed Biosciences

The consensus price target rose 7.1% to CN¥54.53, with the analysts encouraged by the higher revenue and lower forecast losses for this year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Keymed Biosciences at CN¥66.06 per share, while the most bearish prices it at CN¥45.46. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 52% growth on an annualised basis. That is in line with its 45% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 25% per year. So although Keymed Biosciences is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Keymed Biosciences' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Keymed Biosciences.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Keymed Biosciences going out to 2027, and you can see them 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.