News Flash: Analysts Just Made An Incredible Upgrade To Their AnPac Bio-Medical Science Co., Ltd. (NASDAQ:ANPC) Forecasts
Celebrations may be in order for AnPac Bio-Medical Science Co., Ltd. (NASDAQ:ANPC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After the upgrade, the twin analysts covering AnPac Bio-Medical Science are now predicting revenues of CN¥20m in 2020. If met, this would reflect a sizeable 83% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 40% to CN¥7.23. However, before this estimates update, the consensus had been expecting revenues of CN¥13m and CN¥7.36 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.
View our latest analysis for AnPac Bio-Medical Science
The consensus price target held steady at US$13.00 despite the upgrade to revenue forecasts and ongoing losses. Analysts seem to think the business is otherwise performing roughly in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values AnPac Bio-Medical Science at US$18.00 per share, while the most bearish prices it at US$8.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that AnPac Bio-Medical Science is forecast to grow faster in the future than it has in the past, with revenues expected to grow 83%. If achieved, this would be a much better result than the 2.3% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 21% per year. Not only are AnPac Bio-Medical Science's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around AnPac Bio-Medical Science's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 AnPac Bio-Medical Science.
Analysts are definitely bullish on AnPac Bio-Medical Science, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 4 other flags 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.
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.
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