Septerna, Inc. (NASDAQ:SEPN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Septerna will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Septerna too, with the stock up 13% to US$28.01 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the most recent consensus for Septerna from its nine analysts is for revenues of US$74m in 2026 which, if met, would be a satisfactory 2.5% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$66m of revenue in 2026. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

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. It's pretty clear that there is an expectation that Septerna's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 7,296% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Septerna.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth 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 Septerna.

Looking for more information? At least one of Septerna's nine analysts has provided estimates out to 2028, which can be seen for 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.

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.