This Just In: Analysts Are Boosting Their Verona Pharma plc (NASDAQ:VRNA) Outlook for This Year

Verona Pharma plc (NASDAQ:VRNA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Verona Pharma has also found favour with investors, with the stock up a notable 14% to US$72.07 over the past week. Could this upgrade be enough to drive the stock even higher?

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Following the upgrade, the latest consensus from Verona Pharma's ten analysts is for revenues of US$402m in 2025, which would reflect a sizeable 239% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.33 per share this year. Previously, the analysts had been modelling revenues of US$324m and earnings per share (EPS) of US$0.17 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

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With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$92.70 per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Verona Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 40% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Verona Pharma is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Verona Pharma.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Verona Pharma going out to 2027, and you can see them 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.