Need To Know: Analysts Are Much More Bullish On Foghorn Therapeutics Inc. (NASDAQ:FHTX) Revenues

Shareholders in Foghorn Therapeutics Inc. (NASDAQ:FHTX) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After this upgrade, Foghorn Therapeutics' five analysts are now forecasting revenues of US$38m in 2024. This would be a solid 17% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$2.43 per share. However, before this estimates update, the consensus had been expecting revenues of US$32m and US$2.54 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.

View our latest analysis for Foghorn Therapeutics

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Foghorn Therapeutics' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 86% p.a. growth over the last five years. Compare this to the 668 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. So it's pretty clear that, while Foghorn Therapeutics' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Foghorn Therapeutics' prospects. They also upgraded their revenue forecasts, although the latest estimates suggest that Foghorn Therapeutics will grow in line with the overall market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Foghorn Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Foghorn Therapeutics analysts - going out to 2025, 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 upgrading their estimates. So you may also wish to search this free list of stocks 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.