Analyst Forecasts For Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) Are Surging Higher

Shareholders in Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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.

After this upgrade, Eiger BioPharmaceuticals' four analysts are now forecasting revenues of US$96m in 2023. This would be a major improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 89% to US$0.23. However, before this estimates update, the consensus had been expecting revenues of US$84m and US$0.52 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Our analysis indicates that EIGR is potentially overvalued!

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 Eiger BioPharmaceuticals' growth to accelerate, with the forecast 4x annualised growth to the end of 2023 ranking favourably alongside historical growth of 84% 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eiger BioPharmaceuticals to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Eiger BioPharmaceuticals' prospects. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Eiger BioPharmaceuticals' future.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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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.