Forecast: Analysts Think iTeos Therapeutics, Inc.'s (NASDAQ:ITOS) Business Prospects Have Improved Drastically
iTeos Therapeutics, Inc. (NASDAQ:ITOS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following the latest upgrade, the current consensus, from the five analysts covering iTeos Therapeutics, is for revenues of US$358m in 2022, which would reflect a disturbing 28% reduction in iTeos Therapeutics' sales over the past 12 months. Statutory earnings per share are anticipated to nosedive 48% to US$4.38 in the same period. Previously, the analysts had been modelling revenues of US$233m and earnings per share (EPS) of US$2.55 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for iTeos Therapeutics
Despite these upgrades, the consensus price target fell 11% to US$44.60, perhaps signalling that the uplift in performance is not expected to last. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values iTeos Therapeutics at US$59.00 per share, while the most bearish prices it at US$34.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, iTeos Therapeutics could be one for the watch list.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for iTeos Therapeutics going out to 2024, and you can see them free on our platform here..
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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.
