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Here's What Analysts Are Forecasting For Caribou Biosciences, Inc. (NASDAQ:CRBU) After Its First-Quarter Results

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One of the biggest stories of last week was how Caribou Biosciences, Inc. (NASDAQ:CRBU) shares plunged 21% in the week since its latest quarterly results, closing yesterday at US$6.63. Revenues of US$2.7m fell short of estimates by 17%, but statutory losses were relatively mild, coming in 7.2% smaller than the analysts expected, at US$0.32 per share. 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 Caribou Biosciences

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from Caribou Biosciences' seven analysts is for revenues of US$13.0m in 2022, which would reflect a substantial 21% improvement in sales compared to the last 12 months. Losses are forecast to balloon 25% to US$1.50 per share. Before this latest report, the consensus had been expecting revenues of US$12.9m and US$1.55 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The average price target held steady at US$27.43, seeming to indicate that business is performing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Caribou Biosciences, with the most bullish analyst valuing it at US$36.00 and the most bearish at US$19.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Caribou Biosciences is forecast to grow faster in the future than it has in the past, with revenues expected to display 30% annualised growth until the end of 2022. If achieved, this would be a much better result than the 13% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. Not only are Caribou Biosciences' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Caribou Biosciences going out to 2024, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Caribou Biosciences (including 1 which is significant) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.