Analysts Are Betting On Cutia Therapeutics (HKG:2487) With A Big Upgrade This Week

Shareholders in Cutia Therapeutics (HKG:2487) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Cutia Therapeutics will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Cutia Therapeutics' four analysts is for revenues of CN¥282m in 2024, which would reflect a major 105% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥201m in 2024. It looks like there's been a clear increase in optimism around Cutia Therapeutics, given the very substantial lift in revenue forecasts.

See our latest analysis for Cutia Therapeutics

There was no particular change to the consensus price target of CN¥16.85, with Cutia Therapeutics' latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Cutia Therapeutics, with the most bullish analyst valuing it at CN¥29.97 and the most bearish at CN¥8.86 per share. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.

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. We would highlight that Cutia Therapeutics' revenue growth is expected to slow, with the forecast 105% annualised growth rate until the end of 2024 being well below the historical 1,111% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 26% annually. Even after the forecast slowdown in growth, it seems obvious that Cutia Therapeutics is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Cutia Therapeutics.

Hungry for more information? At least one of Cutia Therapeutics' four analysts has provided estimates out to 2026, 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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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.