Need To Know: Analysts Are Much More Bullish On Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)

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. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 20% to US$392 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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Following the upgrade, the latest consensus from Alnylam Pharmaceuticals' 30 analysts is for revenues of US$3.5b in 2025, which would reflect a major 48% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 93% to US$0.15. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$3.0b and losses of US$0.74 per share in 2025. 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 Alnylam Pharmaceuticals

The consensus price target rose 14% to US$379, with the analysts encouraged by the higher revenue and lower forecast losses for this year.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Alnylam Pharmaceuticals' growth to accelerate, with the forecast 118% annualised growth to the end of 2025 ranking favourably alongside historical growth of 37% per annum 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 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Alnylam Pharmaceuticals to grow faster than the wider industry.

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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Alnylam Pharmaceuticals could be worth investigating further.

Better yet, Alnylam Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, for 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 with high insider ownership.

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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.