Industry Analysts Just Made A Dazzling Upgrade To Their 2seventy bio, Inc. (NASDAQ:TSVT) Revenue Forecasts

Celebrations may be in order for 2seventy bio, Inc. (NASDAQ:TSVT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that 2seventy bio will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 28% to US$11.51 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for 2seventy bio from its seven analysts is for revenues of US$150m in 2023 which, if met, would be a substantial 64% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 17% from last year to US$4.22. However, before this estimates update, the consensus had been expecting revenues of US$113m and US$4.60 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for 2seventy bio

Despite these upgrades, the analysts have not made any major changes to their price target of US$28.17, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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. The most optimistic 2seventy bio analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$26.00. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that 2seventy bio is forecast to grow faster in the future than it has in the past, with revenues expected to display 93% annualised growth until the end of 2023. If achieved, this would be a much better result than the 23% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 17% per year. Not only are 2seventy bio's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around 2seventy bio's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at 2seventy bio.

Analysts are definitely bullish on 2seventy bio, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 3 other concerns we've identified .

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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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.