Broker Revenue Forecasts For Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) Are Surging Higher

Celebrations may be in order for Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. 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 most recent consensus for Aurinia Pharmaceuticals from its eight analysts is for revenues of US$158m in 2023 which, if met, would be a satisfactory 7.7% increase on its sales over the past 12 months. Losses are forecast to hold steady at around US$0.67. Yet before this consensus update, the analysts had been forecasting revenues of US$143m and losses of US$0.74 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Aurinia Pharmaceuticals

It will come as no surprise to learn that the analysts have increased their price target for Aurinia Pharmaceuticals 5.5% to US$13.71 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aurinia Pharmaceuticals, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$12.00 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Aurinia Pharmaceuticals' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2023 being well below the historical 72% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 17% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Aurinia Pharmaceuticals.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Aurinia Pharmaceuticals is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Aurinia Pharmaceuticals.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Aurinia Pharmaceuticals to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.

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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.