Industry Analysts Just Made A Substantial Upgrade To Their Travere Therapeutics, Inc. (NASDAQ:TVTX) Revenue Forecasts

Celebrations may be in order for Travere Therapeutics, Inc. (NASDAQ:TVTX) 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 Travere Therapeutics will make substantially more sales than they'd previously expected. The stock price has risen 8.5% to US$23.72 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

After this upgrade, Travere Therapeutics' 16 analysts are now forecasting revenues of US$362m in 2025. This would be a huge 78% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 68% to US$1.30. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$328m and losses of US$1.34 per share in 2025. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Travere Therapeutics

The consensus price target rose 13% to US$32.27, with the analysts encouraged by the higher revenue and lower forecast losses for next year.

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 Travere Therapeutics is forecast to grow faster in the future than it has in the past, with revenues expected to display 58% annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 21% per year. So it looks like Travere Therapeutics is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Travere Therapeutics is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Travere Therapeutics.

Analysts are clearly in love with Travere Therapeutics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 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 backed by insiders.

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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.