Analysts Just Published A Bright New Outlook For Ionis Pharmaceuticals, Inc.'s (NASDAQ:IONS)

Celebrations may be in order for Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

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Following the latest upgrade, the current consensus, from the 26 analysts covering Ionis Pharmaceuticals, is for revenues of US$870m in 2025, which would reflect a small 7.8% reduction in Ionis Pharmaceuticals' sales over the past 12 months. Per-share losses are expected to explode, reaching US$2.64 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$756m and losses of US$3.06 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Ionis Pharmaceuticals

There was no major change to the consensus price target of US$57.35, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Ionis Pharmaceuticals' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 15% to the end of 2025. This tops off a historical decline of 1.1% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 18% annually. So while a broad number of companies are forecast to grow, unfortunately Ionis Pharmaceuticals is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Ionis Pharmaceuticals' prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Ionis Pharmaceuticals.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Ionis Pharmaceuticals analysts - going out to 2027, 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 with high insider ownership.

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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.