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News Flash: Analysts Just Made A Meaningful Upgrade To Their Shield Therapeutics plc (LON:STX) Forecasts

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Simply Wall St
·3 min read
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Shield Therapeutics plc (LON:STX) 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. The market may be pricing in some blue sky too, with the share price gaining 11% to UK£1.19 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the four analysts covering Shield Therapeutics are now predicting revenues of UK£10m in 2020. If met, this would reflect a sizeable improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£9.0m in 2020. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

View our latest analysis for Shield Therapeutics

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Shield Therapeutics is forecast to grow faster in the future than it has in the past, with revenues expected to grow manyfold. If achieved, this would be a much better result than the 94% annual decline over the past year. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 8.1% next year. Not only are Shield Therapeutics' 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 to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth 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 Shield Therapeutics.

Want more information? We have analyst estimates for Shield Therapeutics going out to 2022, and you can see them free on our platform here.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.