Shareholders in Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The stock price has risen 9.4% to US$35.59 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the upgrade, the current consensus from Maravai LifeSciences Holdings' ten analysts is for revenues of US$608m in 2021 which - if met - would reflect a sizeable 114% increase on its sales over the past 12 months. Statutory earnings per share are supposed to nosedive 90% to US$0.85 in the same period. Before this latest update, the analysts had been forecasting revenues of US$430m and earnings per share (EPS) of US$0.53 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
View our latest analysis for Maravai LifeSciences Holdings
It will come as no surprise to learn that the analysts have increased their price target for Maravai LifeSciences Holdings 45% to US$48.78 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Maravai LifeSciences Holdings at US$54.00 per share, while the most bearish prices it at US$42.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
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. We can infer from the latest estimates that forecasts expect a continuation of Maravai LifeSciences Holdings'historical trends, as the 114% annualised revenue growth to the end of 2021 is roughly in line with the 98% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.6% annually. So although Maravai LifeSciences Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Maravai LifeSciences Holdings.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Maravai LifeSciences Holdings going out to 2025, 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 that insiders are buying.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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March 06, 2021 at 12:15AM
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Analysts Just Made A Dazzling Upgrade To Their Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) Forecasts - Yahoo Finance
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