News Flash: Analysts Just Made A Sizeable Upgrade To Their Monte Rosa Therapeutics, Inc. (NASDAQ:GLUE) Forecasts

Monte Rosa Therapeutics, Inc. (NASDAQ:GLUE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Monte Rosa Therapeutics too, with the stock up 13% to US$10.01 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from Monte Rosa Therapeutics' eight analysts is for revenues of US$23m in 2025, which would reflect a major 52% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 18% per share from last year to US$1.60. However, before this estimates update, the consensus had been expecting revenues of US$18m and US$1.85 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 Monte Rosa Therapeutics

There was no major change to the consensus price target of US$16.43, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

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. We would highlight that Monte Rosa Therapeutics' revenue growth is expected to slow, with the forecast 40% annualised growth rate until the end of 2025 being well below the historical 115% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 21% per year. So it's pretty clear that, while Monte Rosa Therapeutics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Monte Rosa Therapeutics' prospects. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at Monte Rosa Therapeutics.

Analysts are clearly in love with Monte Rosa Therapeutics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 2 other concerns we've identified, for 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 with high insider ownership.

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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.