Analysts Just Made A Meaningful Upgrade To Their MannKind Corporation (NASDAQ:MNKD) Forecasts
Celebrations may be in order for MannKind Corporation (NASDAQ:MNKD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on MannKind too, with the stock up 27% to US$4.50 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the latest consensus from MannKind's six analysts is for revenues of US$284m in 2024, which would reflect a major 43% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.20 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of US$246m and earnings per share (EPS) of US$0.088 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for MannKind
Despite these upgrades, the analysts have not made any major changes to their price target of US$7.08, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that MannKind's rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 28% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that MannKind 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 upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 MannKind.
Analysts are definitely bullish on MannKind, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other concern 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.
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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.
