Analysts Are Betting On BeiGene, Ltd. (NASDAQ:BGNE) With A Big Upgrade This Week

Shareholders in BeiGene, Ltd. (NASDAQ:BGNE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that BeiGene 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 6.7% over the past week, closing at US$324. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from BeiGene's 19 analysts is for revenues of US$1.1b in 2021, which would reflect a major 27% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$944m of revenue in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

View our latest analysis for BeiGene

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 37% growth on an annualised basis. That is in line with its 45% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that BeiGene is forecast to grow substantially faster than its industry.

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 BeiGene.

Unanswered questions? At least one of BeiGene's 19 analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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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