Analysts Are Upgrading Cerus Corporation (NASDAQ:CERS) After Its Latest Results

As you might know, Cerus Corporation (NASDAQ:CERS) just kicked off its latest quarterly results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$45m leading estimates by 6.0%. Statutory losses were smaller than the analystsexpected, coming in at US$0.03 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Cerus

Taking into account the latest results, the consensus forecast from Cerus' four analysts is for revenues of US$184.2m in 2024. This reflects a solid 8.4% improvement in revenue compared to the last 12 months. Losses are expected to increase slightly, to US$0.13 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$173.8m and losses of US$0.14 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.

There was no major change to the consensus price target of US$4.50, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. 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. The most optimistic Cerus analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$2.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cerus' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So it's pretty clear that Cerus is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$4.50, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Cerus. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cerus going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Cerus that we have uncovered.

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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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