Yahoo Finance News Flash: Analysts Just Made A Notable Upgrade To Their PTC Therapeutics, Inc. (NASDAQ:PTCT) Forecasts
PTC Therapeutics, Inc. (NASDAQ:PTCT) 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 PTC Therapeutics will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on PTC Therapeutics too, with the stock up 15% to US$38.85 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the latest upgrade, the twelve analysts covering PTC Therapeutics provided consensus estimates of US$749m revenue in 2024, which would reflect a not inconsiderable 19% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 31% to US$5.20 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$672m and losses of US$5.76 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.
View our latest analysis for PTC Therapeutics
It will come as no surprise to learn that the analysts have increased their price target for PTC Therapeutics 22% to US$35.91 on the back of these upgrades.
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 25% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 26% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 18% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PTC Therapeutics 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 PTC Therapeutics 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 an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at PTC Therapeutics.
Analysts are definitely bullish on PTC Therapeutics, 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 3 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 with high insider ownership.
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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.
