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Shareholders in Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) 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. The market seems to be pricing in some improvement in the business too, with the stock up 5.5% over the past week, closing at US$4.31. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
After the upgrade, the five analysts covering Rigel Pharmaceuticals are now predicting revenues of US$159m in 2021. If met, this would reflect a sizeable 50% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$135m of revenue in 2021. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.
Check out our latest analysis for Rigel Pharmaceuticals
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. It's clear from the latest estimates that Rigel Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 50% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 39% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rigel Pharmaceuticals to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Rigel Pharmaceuticals this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Rigel Pharmaceuticals.
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. For more information, you can click through to our free platform to learn more about these forecasts.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
This article by Simply Wall St is general in nature. 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.
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