Brokers Are Upgrading Their Views On Gossamer Bio, Inc. (NASDAQ:GOSS) With These New Forecasts

Shareholders in Gossamer Bio, Inc. (NASDAQ:GOSS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Gossamer Bio's nine analysts is for revenues of US$133m in 2024 which - if met - would reflect a substantial 38% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 32% to US$0.24. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$100m and losses of US$0.41 per share in 2024. 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.

View our latest analysis for Gossamer Bio

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gossamer Bio's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Gossamer Bio'shistorical trends, as the 91% annualised revenue growth to the end of 2024 is roughly in line with the 109% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So although Gossamer Bio is expected to maintain its revenue growth rate, it's definitely expected 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 Gossamer Bio is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Gossamer Bio.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Gossamer Bio going out to 2026, and you can see them 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.