Newsflash: Bicycle Therapeutics plc (NASDAQ:BCYC) Analysts Have Been Trimming Their Revenue Forecasts

Market forces rained on the parade of Bicycle Therapeutics plc (NASDAQ:BCYC) shareholders today, when the analysts downgraded their forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the 13 analysts covering Bicycle Therapeutics are now predicting revenues of US$32m in 2024. If met, this would reflect a sizeable 27% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$5.80 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$36m and losses of US$5.83 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

Check out our latest analysis for Bicycle Therapeutics

The consensus price target was broadly unchanged at US$48.93, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast sales next year.

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 can infer from the latest estimates that forecasts expect a continuation of Bicycle Therapeutics'historical trends, as the 21% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. So it's pretty clear that Bicycle Therapeutics is forecast to grow substantially faster than its industry.

The Bottom Line

Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Bicycle Therapeutics going forwards.

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 Bicycle Therapeutics' financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other warning signs we've identified.

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.