News Flash: Analysts Just Made A Substantial Upgrade To Their Cara Therapeutics, Inc. (NASDAQ:CARA) Forecasts
Cara Therapeutics, Inc. (NASDAQ:CARA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Cara Therapeutics will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Cara Therapeutics too, with the stock up 27% to US$1.35 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the upgrade, the current consensus from Cara Therapeutics' seven analysts is for revenues of US$45m in 2023 which - if met - would reflect a substantial 66% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$38m in 2023. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.
Check out our latest analysis for Cara Therapeutics
There was no particular change to the consensus price target of US$15.43, with Cara Therapeutics' latest outlook seemingly not enough to result in a change of valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Cara Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 176% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cara Therapeutics 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Cara Therapeutics.
Hungry for more information? At least one of Cara 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.
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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.
