New Forecasts: Here's What Analysts Think The Future Holds For Verona Pharma plc (NASDAQ:VRNA)

Shareholders in Verona Pharma plc (NASDAQ:VRNA) 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.

Following the upgrade, the most recent consensus for Verona Pharma from its eight analysts is for revenues of US$315m in 2025 which, if met, would be a sizeable increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$313m in 2025. Overall it looks like Verona Pharma is performing in line with analyst expectations, given the analysts have updated their numbers and there's been no real change to this year's forecast following these updates.

Check out our latest analysis for Verona Pharma

The consensus price target rose 15% to US$81.00, with the analysts clearly more optimistic about Verona Pharma's prospects following this update.

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. The analysts are definitely expecting Verona Pharma's growth to accelerate, with the forecast 6x annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Verona Pharma to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that analysts made no change to their revenue estimates for this year, with the business apparently performing in line with their models. Analysts also expect revenues to grow faster 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Verona Pharma.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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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.