Gossamer Bio, Inc. (NASDAQ:GOSS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following the upgrade, the most recent consensus for Gossamer Bio from its nine analysts is for revenues of US$133m in 2024 which, if met, would be a huge 38% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 32% to US$0.24. Yet before this consensus update, the analysts had been forecasting revenues of US$100m and losses of US$0.41 per share in 2024. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 91% growth on an annualised basis. That is in line with its 109% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So it's pretty clear that Gossamer Bio is forecast to grow substantially 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 Gossamer Bio's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Gossamer Bio.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Gossamer Bio analysts - going out to 2026, 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 with high insider ownership.
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