It's been a pretty great week for RemeGen Co., Ltd. (HKG:9995) shareholders, with its shares surging 17% to HK$16.84 in the week since its latest quarterly results. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from RemeGen's 16 analysts is for revenues of CN¥2.53b in 2025. This reflects a substantial 66% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 43% to CN¥1.65. Before this earnings announcement, the analysts had been modelling revenues of CN¥2.52b and losses of CN¥1.73 per share in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

There's been no major changes to the consensus price target of HK$25.66, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values RemeGen at HK$49.58 per share, while the most bearish prices it at HK$16.01. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RemeGen's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of RemeGen'shistorical trends, as the 50% annualised revenue growth to the end of 2025 is roughly in line with the 45% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 29% annually. So although RemeGen is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple RemeGen analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for RemeGen that we have uncovered.

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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.