Milestone Pharmaceuticals (MIST) Upgraded to Buy: Here's Why

Core Viewpoint - Milestone Pharmaceuticals (MIST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The recent upgrade for Milestone Pharmaceuticals suggests an improvement in its underlying business, which should lead to increased investor interest and a potential rise in stock price [5][10]. - The Zacks Consensus Estimate for Milestone Pharmaceuticals has increased by 25.4% over the past three months, although the company is expected to report a loss of -$0.75 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -11.9% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system in identifying potential investment opportunities [7].