Broker Revenue Forecasts For Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Are Surging Higher

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Madrigal Pharmaceuticals from its 14 analysts is for revenues of US$89m in 2024 which, if met, would be a major increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$28.14 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$75m and losses of US$27.64 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

View our latest analysis for Madrigal Pharmaceuticals

The consensus price target held steady at US$364 despite the upgrade to revenue forecasts and ongoing losses. Analysts seem to think the business is otherwise performing roughly in line with expectations.

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. It's clear from the latest estimates that Madrigal Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 30x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 109% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Madrigal Pharmaceuticals is expected to grow much faster than its 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 Madrigal Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Madrigal Pharmaceuticals.

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.