Editas Medicine, Inc. (NASDAQ:EDIT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Editas Medicine's 16 analysts is for revenues of US$21m in 2025, which would reflect a sizeable 65% decline in sales compared to the last year of performance. Losses are forecast to narrow 2.5% to US$2.49 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$18m and losses of US$2.59 per share in 2025. 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 Editas Medicine

The consensus price target fell 22%, to US$9.07, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 57% by the end of 2025. This indicates a significant reduction from annual growth of 4.2% 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 21% annually for the foreseeable future. It's pretty clear that Editas Medicine's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Editas Medicine's prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Editas Medicine.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Editas Medicine analysts - 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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