Earnings Release: Here's Why Analysts Cut Their Poseida Therapeutics, Inc. (NASDAQ:PSTX) Price Target To US$16.25
There's been a notable change in appetite for Poseida Therapeutics, Inc. (NASDAQ:PSTX) shares in the week since its first-quarter report, with the stock down 12% to US$2.18. Revenues came in 72% better than analyst models expected, at US$1.4m, although statutory losses ballooned 40% to US$0.93, which is much worse than what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Poseida Therapeutics
Taking into account the latest results, the five analysts covering Poseida Therapeutics provided consensus estimates of US$5.88m revenue in 2022, which would reflect a disturbing 82% decline on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$3.34 per share. Before this earnings announcement, the analysts had been modelling revenues of US$4.78m and losses of US$2.67 per share in 2022. Ergo, there's been a clear change in sentiment, with the analysts lifting this year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.
Spiting the revenue upgrading, the average price target fell 32% to US$16.25, clearly signalling that higher forecast losses are a valuation concern. 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 Poseida Therapeutics, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$9.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Poseida Therapeutics going out to 2024, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 4 warning signs for Poseida Therapeutics (2 don't sit too well with us!) that you should be aware of.
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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.
