Analysts' Revenue Estimates For Viridian Therapeutics, Inc. (NASDAQ:VRDN) Are Surging Higher

Shareholders in Viridian Therapeutics, Inc. (NASDAQ:VRDN) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Viridian Therapeutics has also found favour with investors, with the stock up a remarkable 19% to US$27.44 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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After the upgrade, the consensus from Viridian Therapeutics' 13 analysts is for revenues of US$59m in 2026, which would reflect a considerable 17% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$4.06 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$52m and losses of US$4.13 per share in 2026. So there's definitely been a change in sentiment in this update, with the analysts upgrading next year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Viridian Therapeutics

There were no major changes to the US$38.88 consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 14% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 70% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 21% per year. It's pretty clear that Viridian Therapeutics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Viridian Therapeutics' prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Viridian Therapeutics.

Better yet, Viridian Therapeutics is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.