Shareholders in Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) 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.
Following the upgrade, the current consensus from Kiniksa Pharmaceuticals' four analysts is for revenues of US$169m in 2022 which - if met - would reflect a sizeable 139% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$134m of revenue in 2022. It looks like there's been a clear increase in optimism around Kiniksa Pharmaceuticals, given the great increase in revenue forecasts.
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 Kiniksa Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 160% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kiniksa Pharmaceuticals is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Kiniksa Pharmaceuticals.
Want more information? At least one of Kiniksa Pharmaceuticals' four analysts has provided estimates out to 2024, which can be seen 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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