Need To Know: Analysts Are Much More Bullish On Accelerate Diagnostics, Inc. (NASDAQ:AXDX)

Accelerate Diagnostics, Inc. (NASDAQ:AXDX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

After this upgrade, Accelerate Diagnostics' two analysts are now forecasting revenues of US$14m in 2022. This would be a reasonable 7.3% improvement in sales compared to the last 12 months. Per-share losses are expected to see a sharp uptick, reaching US$0.77. Yet before this consensus update, the analysts had been forecasting revenues of US$13m and losses of US$1.04 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Accelerate Diagnostics

It will come as no surprise to learn that the analysts have increased their price target for Accelerate Diagnostics 300% to US$4.00 on the back of these upgrades.

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. We would highlight that Accelerate Diagnostics' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2022 being well below the historical 27% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% per year. So it's pretty clear that, while Accelerate Diagnostics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Accelerate Diagnostics' prospects. 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 and a rising price target, it might be time to take another look at Accelerate Diagnostics.

Analysts are clearly in love with Accelerate Diagnostics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.

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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.