Broker Revenue Forecasts For Silence Therapeutics plc (NASDAQ:SLN) Are Surging Higher

Silence Therapeutics plc (NASDAQ:SLN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Silence Therapeutics will make substantially more sales than they'd previously expected.

Following the latest upgrade, the five analysts covering Silence Therapeutics provided consensus estimates of UK£23m revenue in 2024, which would reflect an uneasy 19% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£21m in 2024. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

See our latest analysis for Silence Therapeutics

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 sales are expected to reverse, with a forecast 15% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 62% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Silence Therapeutics is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Silence Therapeutics next year. They also expect company revenue to perform worse 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 Silence Therapeutics.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concerns with Silence Therapeutics, 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 .

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.

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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.