Stock Analysis

News Flash: Analysts Just Made A Massive Upgrade To Their Celularity Inc. (NASDAQ:CELU) Forecasts

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Celularity Inc. (NASDAQ:CELU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Celularity's three analysts is for revenues of US$13m in 2022, which would reflect a painful 33% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$1.37 per share. However, before this estimates update, the consensus had been expecting revenues of US$8.3m and US$1.51 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Celularity

NasdaqCM:CELU Earnings and Revenue Growth December 14th 2021

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past three years, revenues have declined around 8.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 27% decline in revenue until the end of 2022. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. So while a broad number of companies are forecast to grow, unfortunately Celularity is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Celularity is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Celularity.

Analysts are definitely bullish on Celularity, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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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Find out whether Celularity is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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