BridgeBio Pharma, Inc. (NASDAQ:BBIO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that BridgeBio Pharma will make substantially more sales than they'd previously expected.
After the upgrade, the ten analysts covering BridgeBio Pharma are now predicting revenues of US$92m in 2022. If met, this would reflect a major 29% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$52m of revenue in 2022. It looks like there's been a clear increase in optimism around BridgeBio Pharma, given the chunky increase in revenue forecasts.
We'd point out that there was no major changes to their price target of US$24.50, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values BridgeBio Pharma at US$32.00 per share, while the most bearish prices it at US$17.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that BridgeBio Pharma's revenue growth is expected to slow, with the forecast 40% annualised growth rate until the end of 2022 being well below the historical 55% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. So it's pretty clear that, while BridgeBio Pharma's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth 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 BridgeBio Pharma.
Thirsting for more data? We have analyst estimates for BridgeBio Pharma going out to 2024, and you can see them free on our platform here.
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