Analysts Are Betting On IDEAYA Biosciences, Inc. (NASDAQ:IDYA) With A Big Upgrade This Week

Shareholders in IDEAYA Biosciences, Inc. (NASDAQ:IDYA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that IDEAYA Biosciences will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 4.2% to US$30.92 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the consensus from eleven analysts covering IDEAYA Biosciences is for revenues of US$22m in 2024, implying a perceptible 6.4% decline in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$2.43 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$19m and losses of US$2.50 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for IDEAYA Biosciences

Despite these upgrades, the analysts have not made any major changes to their price target of US$37.17, implying that their latest estimates don't have a long term impact on what they think the stock is worth.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.2% by the end of 2024. This indicates a significant reduction from annual growth of 53% 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 15% per year. It's pretty clear that IDEAYA Biosciences' revenues are expected to perform substantially worse than the wider 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 IDEAYA Biosciences' prospects. 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 IDEAYA Biosciences.

Analysts are clearly in love with IDEAYA Biosciences 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. For more information, you can click through to our platform to learn more about this and the 2 other flags 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.