Arvinas, Inc. (NASDAQ:ARVN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year’s forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After the upgrade, the consensus from Arvinas’ twelve analysts is for revenues of US$74m in 2027, which would reflect a concerning 73% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$3.36 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$64m and losses of US$3.48 per share in 2027. We can see there’s definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year’s revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Arvinas
Despite these upgrades, the analysts have not made any major changes to their price target of US$14.46, implying that their latest estimates don’t have a long term impact on what they think the stock is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 65% annualised revenue decline to the end of 2027. That is a notable change from historical growth of 29% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.4% annually for the foreseeable future. It’s pretty clear that Arvinas’ revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Arvinas is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower 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 Arvinas.
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 Arvinas going out to 2028, 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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