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Neuren Pharmaceuticals Limited (ASX:NEU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Neuren Pharmaceuticals has also found favour with investors, with the stock up a noteworthy 20% to AU$17.30 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the latest upgrade, the current consensus, from the six analysts covering Neuren Pharmaceuticals, is for revenues of AU$163m in 2024, which would reflect a considerable 16% reduction in Neuren Pharmaceuticals' sales over the past 12 months. Before the latest update, the analysts were foreseeing AU$123m of revenue in 2024. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.
View our latest analysis for Neuren Pharmaceuticals
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Neuren Pharmaceuticals' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 29% by the end of 2024. This indicates a significant reduction from annual growth of 82% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 35% annually for the foreseeable future. It's pretty clear that Neuren Pharmaceuticals' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Neuren Pharmaceuticals this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Neuren Pharmaceuticals.
Unanswered questions? We have analyst estimates for Neuren Pharmaceuticals going out to 2026, 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.