Analysts Just Shipped A Substantial Upgrade To Their Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) Estimates

Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The market may be pricing in some blue sky too, with the share price gaining 15% to US$59.97 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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After this upgrade, Mirum Pharmaceuticals' nine analysts are now forecasting revenues of US$504m in 2025. This would be a decent 17% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 32% to US$0.80 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$452m and losses of US$1.13 per share in 2025. 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.

Check out our latest analysis for Mirum Pharmaceuticals

It will come as no surprise to learn that the analysts have increased their price target for Mirum Pharmaceuticals 14% to US$78.27 on the back of these upgrades.

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. We would highlight that Mirum Pharmaceuticals' revenue growth is expected to slow, with the forecast 38% annualised growth rate until the end of 2025 being well below the historical 65% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 19% per year. Even after the forecast slowdown in growth, it seems obvious that Mirum Pharmaceuticals is also 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 Mirum Pharmaceuticals 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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Mirum Pharmaceuticals could be worth investigating further.

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. For more information, you can click through to our free platform to learn more about these forecasts.

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.