Broker Revenue Forecasts For Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) Are Surging Higher

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Alnylam Pharmaceuticals will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 13% to US$269 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the 28 analysts covering Alnylam Pharmaceuticals are now predicting revenues of US$2.1b in 2024. If met, this would reflect an okay 7.0% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$3.59 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$1.9b and losses of US$3.56 per share in 2024. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

See our latest analysis for Alnylam Pharmaceuticals

There were no major changes to the US$261 consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Alnylam Pharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 44% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. Factoring in the forecast slowdown in growth, it seems obvious that Alnylam Pharmaceuticals is also expected to grow slower than other industry participants.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Alnylam Pharmaceuticals is moving incrementally towards profitability. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower 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 Alnylam Pharmaceuticals.

Analysts are clearly in love with Alnylam Pharmaceuticals at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other flags 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 backed by insiders.

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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.

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