Yahoo Finance US$7.07 - That's What Analysts Think VYNE Therapeutics Inc. (NASDAQ:VYNE) Is Worth After These Results
Last week saw the newest quarterly earnings release from VYNE Therapeutics Inc. (NASDAQ:VYNE), an important milestone in the company's journey to build a stronger business. It was a respectable set of results; while revenues of US$3.3m were in line with analyst predictions, statutory losses were 17% smaller than expected, with VYNE Therapeutics losing US$0.15 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for VYNE Therapeutics
Taking into account the latest results, the consensus forecast from VYNE Therapeutics' five analysts is for revenues of US$63.9m in 2021, which would reflect a major 279% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 89% to US$0.42. Before this latest report, the consensus had been expecting revenues of US$67.0m and US$0.46 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.
The consensus price target rose 12% to US$7.07, with the analysts increasingly optimistic about shrinking losses, despite the expected decline in sales. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on VYNE Therapeutics, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$3.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. It's clear from the latest estimates that VYNE Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 279% revenue growth noticeably faster than its historical growth of 23%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that VYNE Therapeutics is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded their revenue estimates, although industry data suggests that VYNE Therapeutics' revenues are expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for VYNE Therapeutics going out to 2024, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for VYNE Therapeutics that you should be aware of.
This article by Simply Wall St is general in nature. 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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