News Flash: Analysts Just Made A Notable Upgrade To Their Travere Therapeutics, Inc. (NASDAQ:TVTX) Forecasts
Travere Therapeutics, Inc. (NASDAQ:TVTX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
After the upgrade, the 14 analysts covering Travere Therapeutics are now predicting revenues of US$268m in 2023. If met, this would reflect a solid 19% improvement in sales compared to the last 12 months. Losses are forecast to narrow 9.3% to US$3.72 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$244m and losses of US$4.36 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
Check out our latest analysis for Travere Therapeutics
Despite these upgrades, the analysts have not made any major changes to their price target of US$27.36, implying that their latest estimates don't have a long term impact on what they think 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 Travere Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Travere Therapeutics is expected to grow much faster than its 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 Travere Therapeutics' prospects. 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 Travere Therapeutics.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Travere Therapeutics analysts - going out to 2025, and you can see them free on our platform here.
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.
