New Forecasts: Here's What Analysts Think The Future Holds For Phibro Animal Health Corporation (NASDAQ:PAHC)

Celebrations may be in order for Phibro Animal Health Corporation (NASDAQ:PAHC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Phibro Animal Health has also found favour with investors, with the stock up a noteworthy 10% to US$18.11 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Phibro Animal Health's three analysts are now forecasting revenues of US$1.2b in 2025. This would be a notable 17% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 120% to US$0.71. Previously, the analysts had been modelling revenues of US$1.0b and earnings per share (EPS) of US$0.71 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Phibro Animal Health

Analysts increased their price target 26% to US$13.50, perhaps signalling that higher revenues are a strong leading indicator for Phibro Animal Health's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Phibro Animal Health's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Phibro Animal Health is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Phibro Animal Health.

Analysts are definitely bullish on Phibro Animal Health, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .

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.