AnaptysBio, Inc. (NASDAQ:ANAB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that AnaptysBio will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from twelve analysts covering AnaptysBio is for revenues of US$44m in 2025, implying a stressful 23% decline in sales compared to the last 12 months. Losses are expected to increase substantially, hitting US$6.40 per share. However, before this estimates update, the consensus had been expecting revenues of US$32m and US$6.75 per share in losses. 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 AnaptysBio

Despite these upgrades, the analysts have not made any major changes to their price target of US$54.36, 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. One more thing stood out to us about these estimates, and it's the idea that AnaptysBio's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 18% to the end of 2025. This tops off a historical decline of 5.7% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 22% annually. So while a broad number of companies are forecast to grow, unfortunately AnaptysBio is expected to see its sales affected worse than other companies in the 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 AnaptysBio's prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at AnaptysBio.

Analysts are definitely bullish on AnaptysBio, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 4 other risks 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.