Audentes Therapeutics Inc (NASDAQ:BOLD): Are Analysts Optimistic?

Audentes Therapeutics Inc’s (NASDAQ:BOLD): Audentes Therapeutics, Inc., a biotechnology company, focuses on developing and commercializing gene therapy products for patients suffering from diseases caused by single gene defects in the United States. The company’s loss has recently broadened since it announced a -US$59.67M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$85.54M, moving it further away from breakeven. As path to profitability is the topic on BOLD’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for BOLD.

View our latest analysis for Audentes Therapeutics

BOLD is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$48.56M in 2021. BOLD is therefore projected to breakeven around 3 years from now. In order to meet this breakeven date, I calculated the rate at which BOLD must grow year-on-year. It turns out an average annual growth rate of 35.71% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, BOLD may become profitable much later than analysts predict.

NasdaqGM:BOLD Past Future Earnings Mar 8th 18
NasdaqGM:BOLD Past Future Earnings Mar 8th 18

Given this is a high-level overview, I won’t go into detail the detail of BOLD’s upcoming projects, though, bear in mind that generally a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one aspect worth mentioning. BOLD currently has no debt on its balance sheet, which is rare for a loss-making biotech, which usually has a high level of debt relative to its equity. This means that BOLD has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on BOLD, so if you are interested in understanding the company at a deeper level, take a look at BOLD’s company page on Simply Wall St. I’ve also compiled a list of essential aspects you should look at:

  1. Historical Track Record: What has BOLD’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Audentes Therapeutics’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.