Stock Analysis

Industry Analysts Just Upgraded Their Immunocore Holdings plc (NASDAQ:IMCR) Revenue Forecasts By 12%

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Immunocore Holdings plc (NASDAQ:IMCR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the consensus from three analysts covering Immunocore Holdings is for revenues of UK£27m in 2021, implying an uneasy 11% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£24m in 2021. It looks like there's been a clear increase in optimism around Immunocore Holdings, given the nice gain to revenue forecasts.

Check out our latest analysis for Immunocore Holdings

NasdaqGS:IMCR Earnings and Revenue Growth May 20th 2021

There was no particular change to the consensus price target of UK£38.02, with Immunocore Holdings' latest outlook seemingly not enough to result in a change of valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Immunocore Holdings, with the most bullish analyst valuing it at UK£64.71 and the most bearish at UK£37.83 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2021. This indicates a significant reduction from annual growth of 17% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. It's pretty clear that Immunocore Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Immunocore Holdings this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Immunocore Holdings.

Of course, there's always more to the story. At least one of Immunocore Holdings' three analysts has provided estimates out to 2023, which can be seen for free on our platform here.

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.

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