Need To Know: Analysts Are Much More Bullish On Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) Revenues

Celebrations may be in order for Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Marinus Pharmaceuticals will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Marinus Pharmaceuticals' ten analysts is for revenues of US$26m in 2022 which - if met - would reflect a substantial 67% increase on its sales over the past 12 months. Losses are expected to increase slightly, to US$2.82 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$18m and losses of US$2.83 per share in 2022. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Marinus Pharmaceuticals

The consensus price target rose 7.0% to US$30.22, with the analysts encouraged by the improved revenue outlook even though the company remains lossmaking. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Marinus Pharmaceuticals analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$17.00. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Marinus Pharmaceuticals' revenue growth is expected to slow, with the forecast 67% annualised growth rate until the end of 2022 being well below the historical 97% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% annually. Even after the forecast slowdown in growth, it seems obvious that Marinus Pharmaceuticals is also expected 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 this year, reflecting increased optimism around Marinus Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Marinus Pharmaceuticals.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Marinus Pharmaceuticals analysts - going out to 2024, 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 that insiders are buying.

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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.