Analysts’ Revenue Estimates For Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) Are Surging Higher
Celebrations may be in order for Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from Biohaven Pharmaceutical Holding’s eleven analysts is for revenues of US$889m in 2022, which would reflect a substantial 189% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 56% to US$5.79. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$807m and losses of US$6.17 per share in 2022. 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.
See our latest analysis for Biohaven Pharmaceutical Holding
There was no major change to the consensus price target of US$163, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. 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 Biohaven Pharmaceutical Holding analyst has a price target of US$201 per share, while the most pessimistic values it at US$144. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Biohaven Pharmaceutical Holding shareholders.
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 Biohaven Pharmaceutical Holding’s rate of growth is expected to accelerate meaningfully, with the forecast 134% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 97% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Biohaven Pharmaceutical Holding 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 next year, reflecting increased optimism around Biohaven Pharmaceutical Holding’s prospects. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year’s forecasts, it might be time to take another look at Biohaven Pharmaceutical Holding.
Analysts are definitely bullish on Biohaven Pharmaceutical Holding, 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. For more information, you can click through to our platform to learn more about this and the 2 other concerns 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.