New Forecasts: Here's What Analysts Think The Future Holds For Travere Therapeutics, Inc. (NASDAQ:TVTX)

Shareholders in Travere Therapeutics, Inc. (NASDAQ:TVTX) 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.

After the upgrade, the 14 analysts covering Travere Therapeutics are now predicting revenues of US$268m in 2023. If met, this would reflect a solid 19% improvement in sales compared to the last 12 months. Losses are forecast to narrow 9.3% to US$3.72 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$244m and losses of US$4.36 per share in 2023. 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 Travere Therapeutics

Despite these upgrades, the analysts have not made any major changes to their price target of US$27.36, implying that their latest estimates don't have a long term impact on what they think the stock 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. It's clear from the latest estimates that Travere Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Travere Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Travere Therapeutics is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Travere Therapeutics could be a good candidate for more research.

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 Travere Therapeutics 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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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.