Analysts Are Betting On Wave Life Sciences Ltd. (NASDAQ:WVE) With A Big Upgrade This Week

Shareholders in Wave Life Sciences Ltd. (NASDAQ:WVE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the current consensus, from the seven analysts covering Wave Life Sciences, is for revenues of US$75m in 2024, which would reflect a substantial 34% reduction in Wave Life Sciences' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$68m in 2024. It looks like there's been a clear increase in optimism around Wave Life Sciences, given the substantial gain in revenue forecasts.

View our latest analysis for Wave Life Sciences

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We'd point out that there was no major changes to their price target of US$13.43, suggesting the latest estimates were not enough to shift their view on the value of the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wave Life Sciences' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 42% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 40% 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 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Wave Life Sciences is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Wave Life Sciences this 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 Wave Life Sciences.

Need some more information? We have analyst estimates for Wave Life Sciences 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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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.

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