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Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Atea Pharmaceuticals will make substantially more sales than they'd previously expected.
After this upgrade, Atea Pharmaceuticals' three analysts are now forecasting revenues of US$1.2b in 2021. This would be a huge improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$681m of revenue in 2021. It looks like there's been a clear increase in optimism around Atea Pharmaceuticals, given the very substantial lift in revenue forecasts.
Additionally, the consensus price target for Atea Pharmaceuticals increased 19% to US$69.33, showing a clear increase in optimism from the analysts involved. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Atea Pharmaceuticals analyst has a price target of US$82.00 per share, while the most pessimistic values it at US$60.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Atea Pharmaceuticals.
That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Atea Pharmaceuticals to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.
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