Bullish: Analysts Just Made A Massive Upgrade To Their Cosmo Pharmaceuticals N.V. (VTX:COPN) Forecasts
Shareholders in Cosmo Pharmaceuticals N.V. (VTX:COPN) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. 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. The stock price has risen 5.1% to CHF69.90 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?
Following the upgrade, the latest consensus from Cosmo Pharmaceuticals' five analysts is for revenues of €233m in 2024, which would reflect a substantial 140% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 10,089% to €7.28. Previously, the analysts had been modelling revenues of €160m and earnings per share (EPS) of €3.44 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 Cosmo Pharmaceuticals
With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to €95.67 per share. 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. The most optimistic Cosmo Pharmaceuticals analyst has a price target of €113 per share, while the most pessimistic values it at €81.69. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The analysts are definitely expecting Cosmo Pharmaceuticals' growth to accelerate, with the forecast 140% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cosmo Pharmaceuticals to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Cosmo Pharmaceuticals could be worth investigating further.
Analysts are clearly in love with Cosmo Pharmaceuticals at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. 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 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.
