Party Time: Brokers Just Made Major Increases To Their C4 Therapeutics, Inc. (NASDAQ:CCCC) Earnings Forecasts

Shareholders in C4 Therapeutics, Inc. (NASDAQ:CCCC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 51% to US$10.95 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 C4 Therapeutics from its seven analysts is for revenues of US$25m in 2024 which, if met, would be a huge 21% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.83. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$22m and losses of US$2.37 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for C4 Therapeutics

It will come as no surprise to learn that the analysts have increased their price target for C4 Therapeutics 14% to US$16.89 on the back of these upgrades.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting C4 Therapeutics' growth to accelerate, with the forecast 21% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. C4 Therapeutics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting C4 Therapeutics is moving incrementally towards profitability. They also upgraded their revenue forecasts, although the latest estimates suggest that C4 Therapeutics will grow in line with the overall market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at C4 Therapeutics.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with C4 Therapeutics, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other risks we've identified, for 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.

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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.