Celebrations may be in order for BridgeBio Pharma, Inc. (NASDAQ:BBIO) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that BridgeBio Pharma will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 7.2% over the past week, closing at US$39.66. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the latest upgrade, the ten analysts covering BridgeBio Pharma provided consensus estimates of US$23m revenue in 2020, which would reflect a concerning 44% decline on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$3.65 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$20m and losses of US$3.69 per share in 2020. 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.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting BridgeBio Pharma is moving incrementally towards profitability. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at BridgeBio Pharma.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for BridgeBio Pharma going out to 2024, and you can see them free on our platform here..
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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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