Time To Worry? Analysts Just Downgraded Their Innate Pharma S.A. (EPA:IPH) Outlook

The latest analyst coverage could presage a bad day for Innate Pharma S.A. (EPA:IPH), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Innate Pharma's four analysts are now forecasting revenues of €34m in 2022. This would be a major 40% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €63m of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Innate Pharma, given the sizeable cut to revenue estimates.

Check out our latest analysis for Innate Pharma

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 Innate Pharma's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 40% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.2% 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 28% per year. Not only are Innate Pharma's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Innate Pharma this year. The analysts also expect revenues to grow faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Innate Pharma after today.

Of course, there's always more to the story. At least one of Innate Pharma's four analysts has provided estimates out to 2024, which can be seen 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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