Need To Know: The Consensus Just Cut Its Antibe Therapeutics Inc. (CVE:ATE) Estimates For 2021

Today is shaping up negative for Antibe Therapeutics Inc. (CVE:ATE) 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.

Following the latest downgrade, the current consensus, from the four analysts covering Antibe Therapeutics, is for revenues of CA$7.4m in 2021, which would reflect a stressful 26% reduction in Antibe Therapeutics' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$9.8m in 2021. The consensus view seems to have become more pessimistic on Antibe Therapeutics, noting the pretty serious reduction to revenue estimates in this update.

See our latest analysis for Antibe Therapeutics

There was no particular change to the consensus price target of CA$2.05, with Antibe Therapeutics' latest outlook seemingly not enough to result in a change of valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Antibe Therapeutics at CA$3.00 per share, while the most bearish prices it at CA$1.40. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

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 the forecast 26% revenue decline a notable change from historical growth of 19% 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 33% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Antibe Therapeutics is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Antibe Therapeutics going forwards.

There might be good reason for analyst bearishness towards Antibe Therapeutics, like a short cash runway. Learn more, and discover the 3 other warning signs we've identified, 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.

When trading Antibe Therapeutics or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.