Growth Investors: Industry Analysts Just Upgraded Their Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) Revenue Forecasts By 73%

Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the three analysts covering Atea Pharmaceuticals are now predicting revenues of US$1.2b in 2021. If met, this would reflect a substantial improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$681m in 2021. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

View our latest analysis for Atea Pharmaceuticals

The consensus price target rose 19% to US$69.33, with the analysts clearly more optimistic about Atea Pharmaceuticals' prospects following this update. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Atea Pharmaceuticals analyst has a price target of US$82.00 per share, while the most pessimistic values it at US$60.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Atea Pharmaceuticals.

Better yet, Atea Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

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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