Rigel Pharmaceuticals, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Statutory earnings performance was extremely strong, with revenue of US$53m beating expectations by 22% and earnings per share (EPS) of US$0.63, an impressive 370%ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Rigel Pharmaceuticals. View them for free.

Taking into account the latest results, the current consensus from Rigel Pharmaceuticals' six analysts is for revenues of US$218.7m in 2025. This would reflect a reasonable 7.7% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 46% to US$3.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$197.8m and earnings per share (EPS) of US$1.16 in 2025. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Check out our latest analysis for Rigel Pharmaceuticals

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$33.74, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values Rigel Pharmaceuticals at US$57.00 per share, while the most bearish prices it at US$20.45. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rigel Pharmaceuticals' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Rigel Pharmaceuticals'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 8.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So although Rigel Pharmaceuticals is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Rigel Pharmaceuticals' earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Rigel Pharmaceuticals going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Rigel Pharmaceuticals .

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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.