New Forecasts: Here's What Analysts Think The Future Holds For Bora Pharmaceuticals Co., LTD. (GTSM:6472)

Shareholders in Bora Pharmaceuticals Co., LTD. (GTSM:6472) 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. The market may be pricing in some blue sky too, with the share price gaining 17% to NT$185 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the current consensus from Bora Pharmaceuticals' three analysts is for revenues of NT$3.7b in 2021 which - if met - would reflect a huge 145% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 180% to NT$10.11. Previously, the analysts had been modelling revenues of NT$3.2b and earnings per share (EPS) of NT$9.60 in 2021. The forecasts seem more optimistic now, with a nice increase in revenue and a slight bump in earnings per share estimates.

See our latest analysis for Bora Pharmaceuticals

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of NT$201, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Bora Pharmaceuticals, with the most bullish analyst valuing it at NT$247 and the most bearish at NT$152 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bora Pharmaceuticals shareholders.

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 Bora Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 145% revenue growth noticeably faster than its historical growth of 42% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bora 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 next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster 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 Bora Pharmaceuticals.

Analysts are definitely bullish on Bora Pharmaceuticals, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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. 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.
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