Analysts Just Shaved Their Compugen Ltd. (NASDAQ:CGEN) Forecasts Dramatically

One thing we could say about the analysts on Compugen Ltd. (NASDAQ:CGEN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon. Shares are up 4.3% to US$1.45 in the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

We've discovered 2 warning signs about Compugen. View them for free.

Following the downgrade, the consensus from four analysts covering Compugen is for revenues of US$14m in 2025, implying a sizeable 49% decline in sales compared to the last 12 months. Losses are supposed to balloon 82% to US$0.28 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$31m and losses of US$0.12 per share in 2025. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Compugen

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 59% by the end of 2025. This indicates a significant reduction from annual growth of 63% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. It's pretty clear that Compugen's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Compugen. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Compugen's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Compugen, and we wouldn't blame shareholders for feeling a little more cautious themselves.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Compugen analysts - going out to 2027, and you can see them free on our platform here.

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 with high insider ownership.

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