Party Time: Brokers Just Made Major Increases To Their BridgeBio Pharma, Inc. (NASDAQ:BBIO) Earnings Forecasts

Shareholders in BridgeBio Pharma, Inc. (NASDAQ:BBIO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from BridgeBio Pharma's 14 analysts is for revenues of US$385m in 2024 which - if met - would reflect a major 76% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$2.60. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$397m and losses of US$2.63 per share in 2024. There doesn't appear to have been a major change in analyst sentiment following this consensus update, with a cut to revenue and no change to loss per share estimates.

Check out our latest analysis for BridgeBio Pharma

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There was no real change to the consensus price target of US$50.23, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on BridgeBio Pharma's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting BridgeBio Pharma's growth to accelerate, with the forecast 112% annualised growth to the end of 2024 ranking favourably alongside historical growth of 31% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that BridgeBio Pharma is expected to grow much faster than its industry.

The Bottom Line

Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at BridgeBio Pharma.

Analysts are clearly in love with BridgeBio Pharma at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other warning signs we've identified .

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 with high insider ownership.

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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.