Analysts Just Shipped A Substantial Upgrade To Their Myovant Sciences Ltd. (NYSE:MYOV) Estimates

Myovant Sciences Ltd. (NYSE:MYOV) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory 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. The stock price has risen 5.4% to US$20.39 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the current consensus from Myovant Sciences' five analysts is for revenues of US$321m in 2022 which - if met - would reflect a major 441% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 49% to US$1.45. Yet before this consensus update, the analysts had been forecasting revenues of US$263m and losses of US$1.94 per share in 2022. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for Myovant Sciences

Despite these upgrades, the analysts have not made any major changes to their price target of US$35.00, implying that their latest estimates don't have a long term impact on what they think the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Myovant Sciences, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$28.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Myovant Sciences is moving incrementally towards profitability. 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 Myovant Sciences could be a good candidate for more research.

Analysts are definitely bullish on Myovant Sciences, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including 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 that insiders are buying.

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