Broker Revenue Forecasts For iTeos Therapeutics, Inc. (NASDAQ:ITOS) Are Surging Higher
Shareholders in iTeos Therapeutics, Inc. (NASDAQ:ITOS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the consensus from five analysts covering iTeos Therapeutics is for revenues of US$18m in 2023, implying a sizeable 86% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$15m of revenue in 2023. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.
View our latest analysis for iTeos Therapeutics
There was no particular change to the consensus price target of US$40.12, with iTeos Therapeutics' latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on iTeos Therapeutics, with the most bullish analyst valuing it at US$53.58 and the most bearish at US$32.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 93% by the end of 2023. This indicates a significant reduction from annual growth of 84% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - iTeos Therapeutics is expected to lag the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at iTeos Therapeutics.
But wait - there's more! We have analyst estimates for iTeos Therapeutics going out to 2025, and you can see them 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.
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