News Flash: Analysts Just Made A Notable Upgrade To Their Taysha Gene Therapies, Inc. (NASDAQ:TSHA) Forecasts
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) 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 Taysha Gene Therapies will make substantially more sales than they'd previously expected. Taysha Gene Therapies has also found favour with investors, with the stock up a magnificent 41% to US$3.25 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the latest upgrade, the ten analysts covering Taysha Gene Therapies provided consensus estimates of US$6.8m revenue in 2024, which would reflect a painful 56% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 33% to US$0.40 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$5.4m and losses of US$0.44 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
See our latest analysis for Taysha Gene Therapies
The consensus price target rose 7.9% to US$6.06, with the analysts encouraged by the higher revenue and lower forecast losses for this year.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 56% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 134% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Taysha Gene Therapies is expected to lag the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Taysha Gene Therapies is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. 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 Taysha Gene Therapies.
Analysts are clearly in love with Taysha Gene Therapies at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. You can learn more, and discover the 1 other risk we've identified, 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.
