Aligos Therapeutics, Inc. (NASDAQ:ALGS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Aligos Therapeutics will make substantially more sales than they'd previously expected. Aligos Therapeutics has also found favour with investors, with the stock up a whopping 53% to US$7.28 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 latest consensus from Aligos Therapeutics' seven analysts is for revenues of US$36m in 2026, which would reflect a decent 15% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 46% to US$6.52. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$22m and losses of US$6.98 per share in 2026. 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.

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. It's clear from the latest estimates that Aligos Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 33% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aligos Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Aligos Therapeutics' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Aligos Therapeutics.

Analysts are definitely bullish on Aligos Therapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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.