Celebrations may be in order for CASI Pharmaceuticals, Inc. (NASDAQ:CASI) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that CASI Pharmaceuticals will make substantially more sales than they'd previously expected.
Following the upgrade, the latest consensus from CASI Pharmaceuticals' four analysts is for revenues of US$24m in 2021, which would reflect a sizeable 108% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 46% to US$0.24. However, before this estimates update, the consensus had been expecting revenues of US$23m and US$0.24 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a to its losses per share forecasts.
It will come as a surprise to learn that the consensus price target rose 5.4% to US$4.00, with the analysts clearly more interested in growing revenue, even as losses intensify. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on CASI Pharmaceuticals, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$3.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await CASI Pharmaceuticals shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting CASI Pharmaceuticals' growth to accelerate, with the forecast 108% growth ranking favourably alongside historical growth of 52% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that CASI Pharmaceuticals is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at CASI Pharmaceuticals.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CASI Pharmaceuticals analysts - going out to 2024, 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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