Analysts Just Made A Noticeable Upgrade To Their Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) Forecasts

Shareholders in Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 seems to be pricing in some improvement in the business too, with the stock up 5.5% over the past week, closing at US$3.65. Could this big upgrade push the stock even higher?

After the upgrade, the three analysts covering Pieris Pharmaceuticals are now predicting revenues of US$33m in 2021. If met, this would reflect a modest 2.6% improvement in sales compared to the last 12 months. Losses are expected to increase substantially, hitting US$0.77 per share. However, before this estimates update, the consensus had been expecting revenues of US$22m and US$0.90 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Pieris Pharmaceuticals

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Pieris Pharmaceuticals' revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2021 being well below the historical 34% 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 9.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Pieris Pharmaceuticals is also expected to grow slower than other industry participants.

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. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Pieris Pharmaceuticals' future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Pieris Pharmaceuticals going out to 2023, 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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