Industry Analysts Just Made A Substantial Upgrade To Their Albireo Pharma, Inc. (NASDAQ:ALBO) Revenue Forecasts

Shareholders in Albireo Pharma, Inc. (NASDAQ:ALBO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Albireo Pharma's eight analysts is for revenues of US$17m in 2021, which would reflect a substantial 42% improvement in sales compared to the last 12 months. Losses are expected to increase substantially, hitting US$7.43 per share. However, before this estimates update, the consensus had been expecting revenues of US$14m and US$8.03 per share in losses. 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.

See our latest analysis for Albireo Pharma

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Albireo Pharma's past performance and to peers in the same industry. It's clear from the latest estimates that Albireo Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 42% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 2.5% 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 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Albireo Pharma is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Albireo Pharma is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Albireo Pharma.

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 Albireo Pharma going out to 2025, and you can see them free on our platform here..

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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