Broker Revenue Forecasts For Ikena Oncology, Inc. (NASDAQ:IKNA) Are Surging Higher
Ikena Oncology, Inc. (NASDAQ:IKNA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the four analysts covering Ikena Oncology are now predicting revenues of US$22m in 2024. If met, this would reflect a sizeable 57% improvement in sales compared to the last 12 months. Losses are expected to increase substantially, hitting US$1.71 per share. However, before this estimates update, the consensus had been expecting revenues of US$17m and US$1.71 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.
Check out our latest analysis for Ikena Oncology
Analysts trimmed their valuations, with the average price target falling 14% to US$14.67, with the ongoing losses clearly weighing on sentiment despite the upgraded revenue estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Ikena Oncology's growth to accelerate, with the forecast 43% annualised growth to the end of 2024 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ikena Oncology to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Ikena Oncology's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Ikena Oncology.
Analysts are definitely bullish on Ikena Oncology, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 3 other flags we've identified, 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 that insiders are buying.
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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.
