Analysts Are Betting On Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) With A Big Upgrade This Week

Celebrations may be in order for Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Pieris Pharmaceuticals' three analysts is for revenues of US$28m in 2021, which would reflect a small 4.5% decline in sales compared to the last year of performance. Losses are supposed to balloon 30% to US$0.89 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$24m and losses of US$0.88 per share in 2021. 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 Pieris Pharmaceuticals

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pieris Pharmaceuticals' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 4.5% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 40% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pieris Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Pieris Pharmaceuticals is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Pieris Pharmaceuticals.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Pieris Pharmaceuticals going out to 2025, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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