Need To Know: The Consensus Just Cut Its Adaptimmune Therapeutics plc (NASDAQ:ADAP) Estimates For 2022

One thing we could say about the analysts on Adaptimmune Therapeutics plc (NASDAQ:ADAP) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Bidders are definitely seeing a different story, with the stock price of US$2.22 reflecting a 26% rise in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

Following the downgrade, the current consensus from Adaptimmune Therapeutics' six analysts is for revenues of US$19m in 2022 which - if met - would reflect a sizeable 64% increase on its sales over the past 12 months. Losses are expected to increase slightly, to US$1.13 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$26m and losses of US$1.12 per share in 2022. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

Check out our latest analysis for Adaptimmune 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. One thing stands out from these estimates, which is that Adaptimmune Therapeutics is forecast to grow faster in the future than it has in the past, with revenues expected to display 169% annualised growth until the end of 2022. If achieved, this would be a much better result than the 44% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. Not only are Adaptimmune Therapeutics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Adaptimmune Therapeutics after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Adaptimmune Therapeutics' financials, such as dilutive stock issuance over the past year. Learn more, and discover the 3 other flags we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.