In This Article:
Celebrations may be in order for BridgeBio Pharma, Inc. (NASDAQ:BBIO) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on BridgeBio Pharma too, with the stock up 23% to US$11.09 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from BridgeBio Pharma's seven analysts is for revenues of US$96m in 2022 which - if met - would reflect a satisfactory 5.7% increase on its sales over the past 12 months. Losses are forecast to narrow 2.6% to US$3.35 per share. However, before this estimates update, the consensus had been expecting revenues of US$72m and US$3.67 per share in losses. 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 BridgeBio Pharma
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that BridgeBio Pharma's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 51% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that BridgeBio Pharma is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around BridgeBio Pharma's prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at BridgeBio Pharma.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple BridgeBio Pharma analysts - going out to 2024, and you can see them free on our platform here.