Bullish: Analysts Just Made An Incredible Upgrade To Their Kazia Therapeutics Limited (ASX:KZA) Forecasts

Kazia Therapeutics Limited (ASX:KZA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Kazia Therapeutics from its twin analysts is for revenues of AU$4.3m in 2021 which, if met, would be a major 335% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 26% to AU$0.13. Yet prior to the latest estimates, the analysts had been forecasting revenues of AU$2.7m and losses of AU$0.45 per share in 2021. 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.

Check out our latest analysis for Kazia Therapeutics

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. For example, we noticed that Kazia Therapeutics' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 335%, well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are Kazia Therapeutics' 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 Kazia Therapeutics is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Kazia Therapeutics.

Analysts are definitely bullish on Kazia Therapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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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