News Flash: Analysts Just Made A Notable Upgrade To Their REGENXBIO Inc. (NASDAQ:RGNX) Forecasts
REGENXBIO Inc. (NASDAQ:RGNX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following the upgrade, the current consensus from REGENXBIO's six analysts is for revenues of US$250m in 2027 which - if met - would reflect a huge 63% increase on its sales over the past 12 months. Losses are presumed to reduce, shrinking 10% per share from last year to US$2.38. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$205m and losses of US$2.66 per share in 2027. 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.
See our latest analysis for REGENXBIO
Despite these upgrades, the analysts have not made any major changes to their price target of US$24.00, implying that their latest estimates don't have a long term impact on what they think the stock is worth.
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. For example, we noticed that REGENXBIO's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 48% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 25% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 22% per year. So it looks like REGENXBIO is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting REGENXBIO is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at REGENXBIO.
Analysts are clearly in love with REGENXBIO at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .
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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