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Kymera Therapeutics, Inc. (NASDAQ:KYMR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Kymera Therapeutics from its seven analysts is for revenues of US$83m in 2021 which, if met, would be a huge 69% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$73m in 2021. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
There was no particular change to the consensus price target of US$74.33, with Kymera Therapeutics' latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kymera Therapeutics analyst has a price target of US$85.00 per share, while the most pessimistic values it at US$64.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kymera Therapeutics is an easy business to forecast or the underlying assumptions are obvious.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kymera Therapeutics' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Kymera Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 101% growth on an annualised basis. This is compared to a historical growth rate of 684% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. Even after the forecast slowdown in growth, it seems obvious that Kymera Therapeutics is also expected to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Kymera Therapeutics this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Kymera Therapeutics.
But wait - there's more! At least one of Kymera Therapeutics' seven analysts has provided estimates out to 2025, which can be seen for 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.
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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