Industry Analysts Just Upgraded Their Immunomedics, Inc. (NASDAQ:IMMU) Revenue Forecasts By 16%
Immunomedics, Inc. (NASDAQ:IMMU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After this upgrade, Immunomedics' ten analysts are now forecasting revenues of US$78m in 2020. This would be a huge improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 20% to US$1.45. Yet before this consensus update, the analysts had been forecasting revenues of US$67m and losses of US$1.58 per share in 2020. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Immunomedics
The consensus price target rose 7.1% to US$38.55, with the analysts encouraged by the higher revenue and lower forecast losses for this year. 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 Immunomedics, with the most bullish analyst valuing it at US$54.00 and the most bearish at US$23.00 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Immunomedics' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow many times over, well above its historical decline of 44% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 22% next year. Not only are Immunomedics' 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 here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Immunomedics'prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Immunomedics.
Analysts are clearly in love with Immunomedics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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