News Flash: Analysts Just Made A Notable Upgrade To Their Cara Therapeutics, Inc. (NASDAQ:CARA) Forecasts

Celebrations may be in order for Cara Therapeutics, Inc. (NASDAQ:CARA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Cara Therapeutics will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 27% to US$1.35 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the most recent consensus for Cara Therapeutics from its seven analysts is for revenues of US$45m in 2023 which, if met, would be a sizeable 66% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$38m in 2023. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

Check out our latest analysis for Cara Therapeutics

We'd point out that there was no major changes to their price target of US$15.43, suggesting the latest estimates were not enough to shift their view on the value of the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Cara Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 176% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 20% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cara Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Cara Therapeutics.

But wait - there's more! We have analyst estimates for Cara Therapeutics going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.