Yahoo Finance Need To Know: Analysts Are Much More Bullish On Selecta Biosciences, Inc. (NASDAQ:SELB)
Shareholders in Selecta Biosciences, Inc. (NASDAQ:SELB) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Selecta Biosciences has also found favour with investors, with the stock up a whopping 64% to US$2.51 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the consensus from seven analysts covering Selecta Biosciences is for revenues of US$110m in 2022, implying a not inconsiderable 14% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to crater 31% to US$0.14 in the same period. However, before this estimates update, the consensus had been expecting revenues of US$68m and US$0.11 per share in losses. It looks like there's been a definite improvement in business conditions, with a revenue upgrade supposed to lead to profitability sooner than previously forecast.
See our latest analysis for Selecta Biosciences
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 26% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 81% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 15% annually for the foreseeable future. It's pretty clear that Selecta Biosciences' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that there is now an expectation for Selecta Biosciences to become profitable this year, compared to previous expectations of a loss. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Selecta Biosciences' future.
Analysts are definitely bullish on Selecta Biosciences, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .
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.
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