Celebrations may be in order for Liquidia Corporation (NASDAQ:LQDA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Liquidia too, with the stock up 24% to US$55.21 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the most recent consensus for Liquidia from its seven analysts is for revenues of US$895m in 2027 which, if met, would be a substantial 44% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$2.89 per share next year. Previously, the analysts had been modelling revenues of US$762m and earnings per share (EPS) of US$2.11 in 2027. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Liquidia
It will come as no surprise to learn that the analysts have increased their price target for Liquidia 12% to US$60.75 on the back of these upgrades.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Liquidia's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 34% growth on an annualised basis. This is compared to a historical growth rate of 81% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.6% annually. Even after the forecast slowdown in growth, it seems obvious that Liquidia is also expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Liquidia.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning sign with Liquidia, including recent substantial insider selling. You can learn more, and discover the 1 other warning sign we've identified, for 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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