Yahoo Finance New Forecasts: Here's What Analysts Think The Future Holds For Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)
Shareholders in Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the eleven analysts covering Arcturus Therapeutics Holdings are now predicting revenues of US$45m in 2022. If met, this would reflect a notable 11% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$6.18. Yet before this consensus update, the analysts had been forecasting revenues of US$29m and losses of US$6.94 per share in 2022. 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 Arcturus Therapeutics Holdings
Despite these upgrades, the analysts have not made any major changes to their price target of US$50.55, implying that their latest estimates don't have a long term impact on what they think the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Arcturus Therapeutics Holdings at US$140 per share, while the most bearish prices it at US$8.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how think this business will perform. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Arcturus Therapeutics Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 22% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 4.0% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. Not only are Arcturus Therapeutics Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Arcturus Therapeutics Holdings is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Arcturus Therapeutics Holdings.
Better yet, Arcturus Therapeutics Holdings is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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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