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Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Recursion Pharmaceuticals will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for Recursion Pharmaceuticals from its eight analysts is for revenues of US$96m in 2025 which, if met, would be a substantial 63% increase on its sales over the past 12 months. Losses are supposed to balloon 48% to US$1.70 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$84m and losses of US$1.71 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.
Check out our latest analysis for Recursion Pharmaceuticals
There were no major changes to the US$9.00 consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales.
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. The analysts are definitely expecting Recursion Pharmaceuticals' growth to accelerate, with the forecast 63% annualised growth to the end of 2025 ranking favourably alongside historical growth of 47% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Recursion Pharmaceuticals to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Recursion Pharmaceuticals' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Recursion Pharmaceuticals.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential concerns with Recursion Pharmaceuticals, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.