Earnings Update: Here's Why Analysts Just Lifted Their Nurix Therapeutics, Inc. (NASDAQ:NRIX) Price Target To US$51.60
Nurix Therapeutics, Inc. (NASDAQ:NRIX) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at US$13m and leading to a corresponding blowout in statutory losses. The loss per share was US$2.76, some 19% larger than the analysts forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Nurix Therapeutics
Following the latest results, Nurix Therapeutics' five analysts are now forecasting revenues of US$36.7m in 2021. This would be a huge 183% improvement in sales compared to the last 12 months. Losses are expected to hold steady at around US$1.73. Before this earnings announcement, the analysts had been modelling revenues of US$36.7m and losses of US$1.73 per share in 2021.
The average price target fell 11% to US$51.60, with the ongoing losses seemingly a concern for the analysts, despite the lack of real change to the earnings forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Nurix Therapeutics, with the most bullish analyst valuing it at US$56.00 and the most bearish at US$40.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. For example, we noticed that Nurix Therapeutics' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 183%, well above its historical decline of 60% a year over the past year. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 20% next year. So it looks like Nurix Therapeutics is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nurix Therapeutics analysts - going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Nurix Therapeutics (of which 1 doesn't sit too well with us!) you should know about.
This article by Simply Wall St is general in nature. 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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