Arcellx, Inc. (NASDAQ:ACLX) Just Reported And Analysts Have Been Lifting Their Price Targets

Arcellx, Inc. (NASDAQ:ACLX) just released its latest full-year results and things are looking bullish. The results were impressive, with revenues of US$110m exceeding analyst forecasts by 64%, and statutory losses of US$1.47 were likewise much smaller than the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Arcellx

Following the recent earnings report, the consensus from ten analysts covering Arcellx is for revenues of US$77.1m in 2024. This implies a concerning 30% decline in revenue compared to the last 12 months. Losses are forecast to balloon 81% to US$2.47 per share. Before this latest report, the consensus had been expecting revenues of US$72.8m and US$2.34 per share in losses. So it's pretty clear consensus is mixed on Arcellx after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a moderate increase in per-share loss expectations.

It will come as a surprise to learn that the consensus price target rose 7.0% to US$72.27, with the analysts clearly more interested in growing revenue, even as losses intensify. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Arcellx at US$85.00 per share, while the most bearish prices it at US$57.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Arcellx shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 30% annualised decline to the end of 2024. That is a notable change from historical growth of 79% 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 18% per year. It's pretty clear that Arcellx's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Arcellx. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Arcellx going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 4 warning signs for Arcellx (of which 1 is a bit concerning!) you should know about.

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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.