Time To Worry? Analysts Just Downgraded Their HOOKIPA Pharma Inc. (NASDAQ:HOOK) Outlook
Today is shaping up negative for HOOKIPA Pharma Inc. (NASDAQ:HOOK) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
After the downgrade, the four analysts covering HOOKIPA Pharma are now predicting revenues of US$27m in 2024. If met, this would reflect a major 34% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 34% to US$0.55 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$35m and losses of US$0.51 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for HOOKIPA Pharma
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. It's clear from the latest estimates that HOOKIPA Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect HOOKIPA Pharma to grow faster than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at HOOKIPA Pharma. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on HOOKIPA Pharma after today.
After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with HOOKIPA Pharma's business, like major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 3 other risks we've identified.
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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.
