Analysts Just Made A Major Revision To Their HOOKIPA Pharma Inc. (NASDAQ:HOOK) Revenue Forecasts

The analysts covering HOOKIPA Pharma Inc. (NASDAQ:HOOK) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for HOOKIPA Pharma from its four analysts is for revenues of US$27m in 2024 which, if met, would be a huge 34% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 34% to US$0.55. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$35m and losses of US$0.51 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for HOOKIPA Pharma

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that HOOKIPA Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that HOOKIPA Pharma is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of HOOKIPA Pharma going forwards.

There might be good reason for analyst bearishness towards HOOKIPA Pharma, like major dilution from new stock issuance in the past year. Learn more, and discover the 3 other flags 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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