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Agios Pharmaceuticals (NASDAQ:AGIO) has seen a 5.6% surge in its share price to $22.50 over the past week, even amidst a downgrade in the company’s future outlook by eight analysts on Thursday. The revised predictions have led to a significant reduction in revenue estimates for the pharmaceutical firm, indicating a weaker outlook for the company’s performance.
The updated consensus projects revenues of $52 million in 2024, marking a substantial 115% improvement on sales from the previous year. This contrasts with earlier forecasts predicting revenues of $103 million for 2024. Despite this downgrade in revenue estimates, Agios Pharmaceuticals’ revenues are still anticipated to outperform the broader market and significantly surpass its historical annual decline of 53% over the past five years.
Per-share losses are expected to align with earlier forecasts, reaching $5.07. The consensus price target remains steady at $37.50, implying that the revised revenue estimates are not anticipated to negatively impact Agios Pharmaceuticals’ long-term valuation.
In a positive development for the company, its growth rate is expected to accelerate substantially, with an 84% annualized increase in revenues projected by the end of 2024. This projection significantly surpasses the broader industry’s expected annual growth rate of 15%. Despite the downgrade in revenue estimates, the company’s long-term prospects take precedence over next year’s earnings, which is reflected in the steady share price and anticipated growth rate.
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