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Analysts Are Betting On Wave Life Sciences Ltd. (NASDAQ:WVE) With A Big Upgrade This Week

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Simply Wall St
·2 min read
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Wave Life Sciences Ltd. (NASDAQ:WVE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the six analysts covering Wave Life Sciences are now predicting revenues of US$79m in 2021. If met, this would reflect a huge improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$69m of revenue in 2021. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

View our latest analysis for Wave Life Sciences

earnings-and-revenue-growth
earnings-and-revenue-growth

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Wave Life Sciences' growth to accelerate, with the forecast 5x growth ranking favourably alongside historical growth of 58% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wave Life Sciences to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Wave Life Sciences.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential concerns with Wave Life Sciences, including a short cash runway. You can learn more, and discover the 3 other concerns we've identified, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.