Ovid Therapeutics Inc. (NASDAQ:OVID) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The stock price has risen 9.0% to US$4.47 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the upgrade, the current consensus from Ovid Therapeutics' six analysts is for revenues of US$125m in 2021 which - if met - would reflect a major increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.72 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of US$103m and earnings per share (EPS) of US$0.49 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. With a serious upgrade to expectations, it might be time to take another look at Ovid Therapeutics.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Ovid Therapeutics analysts - going out to 2025, and you can see them free on our platform here.
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