Need To Know: Analysts Are Much More Bullish On OncoCyte Corporation (NYSEMKT:OCX) Revenues
OncoCyte Corporation (NYSEMKT:OCX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that OncoCyte will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 5.3% to US$1.79 over the past 7 days. Could this big upgrade push the stock even higher?
Following the upgrade, the current consensus from OncoCyte's six analysts is for revenues of US$7.0m in 2021 which - if met - would reflect a major increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$6.2m in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
View our latest analysis for OncoCyte
The consensus price target rose 24% to US$3.83, with the analysts clearly more optimistic about OncoCyte's prospects following this update. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values OncoCyte at US$6.00 per share, while the most bearish prices it at US$2.00. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at OncoCyte.
Analysts are clearly in love with OncoCyte at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .
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.
This article by Simply Wall St is general in nature. 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.
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