Yahoo Finance Analysts' Revenue Estimates For Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) Are Surging Higher
Celebrations may be in order for Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the latest consensus from Apellis Pharmaceuticals' 16 analysts is for revenues of US$304m in 2023, which would reflect a sizeable 187% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$5.45. However, before this estimates update, the consensus had been expecting revenues of US$192m and US$5.41 per share in losses. 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.
View our latest analysis for Apellis Pharmaceuticals
Analysts increased their price target 16% to US$103, perhaps signalling that higher revenues are a strong leading indicator for Apellis Pharmaceuticals's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Apellis Pharmaceuticals, with the most bullish analyst valuing it at US$156 and the most bearish at US$76.00 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Apellis Pharmaceuticals' past performance and to peers in the same industry. It's clear from the latest estimates that Apellis Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 3x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 47% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Apellis 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 Apellis Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Apellis Pharmaceuticals.
Better yet, Apellis Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, for free on our platform here.
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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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.
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