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Brokers Are Upgrading Their Views On Cosmo Pharmaceuticals N.V. (VTX:COPN) With These New Forecasts

Cosmo Pharmaceuticals N.V. (VTX:COPN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investor sentiment seems to be improving too, with the share price up 9.6% to CHF56.20 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Cosmo Pharmaceuticals' four analysts are now forecasting revenues of €132m in 2023. This would be a sizeable 27% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 156% to €1.73. Prior to this update, the analysts had been forecasting revenues of €113m and earnings per share (EPS) of €0.88 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Cosmo Pharmaceuticals

earnings-and-revenue-growth
SWX:COPN Earnings and Revenue Growth January 5th 2024

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.6% to €81.85 per share. 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 Cosmo Pharmaceuticals at €89.96 per share, while the most bearish prices it at €70.67. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cosmo Pharmaceuticals is an easy business to forecast or the underlying assumptions are obvious.

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cosmo Pharmaceuticals' past performance and to peers in the same industry. It's clear from the latest estimates that Cosmo Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 61% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cosmo Pharmaceuticals is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Cosmo Pharmaceuticals.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Cosmo Pharmaceuticals 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 that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.