This Just In: Analysts Are Boosting Their Protagonist Therapeutics, Inc. (NASDAQ:PTGX) Outlook for This Year
Celebrations may be in order for Protagonist Therapeutics, Inc. (NASDAQ:PTGX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 13% to US$32.15 in the last 7 days. Could this upgrade be enough to drive the stock even higher?
After this upgrade, Protagonist Therapeutics' six analysts are now forecasting revenues of US$208m in 2024. This would be a sizeable 246% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.79 in per-share earnings. However, before this estimates update, the consensus had been expecting revenues of US$118m and US$0.83 per share in losses. It looks like there's been a definite improvement in business conditions, with a revenue upgrade supposed to lead to profitability sooner than previously forecast.
See our latest analysis for Protagonist Therapeutics
Despite these upgrades, the analysts have not made any major changes to their price target of US$43.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
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. The analysts are definitely expecting Protagonist Therapeutics' growth to accelerate, with the forecast 246% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Protagonist Therapeutics is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that the consensus now expects Protagonist Therapeutics to become profitable this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Protagonist Therapeutics could be a good candidate for more research.
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 Protagonist Therapeutics going out to 2026, and you can see them free on our platform here..
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
