Industry Analysts Just Upgraded Their CymaBay Therapeutics, Inc. (NASDAQ:CBAY) Revenue Forecasts By 32%
Celebrations may be in order for CymaBay Therapeutics, Inc. (NASDAQ:CBAY) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The market seems to be pricing in some improvement in the business too, with the stock up 5.9% over the past week, closing at US$22.63. Could this big upgrade push the stock even higher?
Following the latest upgrade, the current consensus, from the eleven analysts covering CymaBay Therapeutics, is for revenues of US$19m in 2024, which would reflect a stressful 40% reduction in CymaBay Therapeutics' sales over the past 12 months. Losses are supposed to balloon 70% to US$1.35 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$14m and losses of US$1.34 per share in 2024. So there's definitely been a change in sentiment in this update, with the analysts upgrading next year's revenue estimates, while at the same time holding losses per share steady.
Check out our latest analysis for CymaBay Therapeutics
The consensus price target held steady at US$25.82 despite the upgrade to revenue forecasts and ongoing losses. Analysts seem to think the business is otherwise performing roughly in line with expectations.
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. We would highlight that sales are expected to reverse, with a forecast 34% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 87% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.5% per year. It's pretty clear that CymaBay Therapeutics' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting CymaBay Therapeutics is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at CymaBay Therapeutics.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CymaBay Therapeutics going out to 2025, 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.
