Immatics N.V. (NASDAQ:IMTX) Analysts Are Pretty Bullish On The Stock After Recent Results

There's been a notable change in appetite for Immatics N.V. (NASDAQ:IMTX) shares in the week since its full-year report, with the stock down 11% to US$11.21. Revenues of US$26m came in 8.7% below estimates, but statutory losses were slightly better than expected, at US$4.59 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Immatics

Following the latest results, Immatics' four analysts are now forecasting revenues of US$40.3m in 2021. This would be a sizeable 54% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 94% to US$1.55. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$32.2m and losses of US$1.33 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analysts significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the revenue growth will not be achieved without incremental costs.

The average price target rose 38% to US$24.00, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Immatics at US$30.00 per share, while the most bearish prices it at US$19.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Immatics' revenue growth is expected to slow, with the forecast 54% annualised growth rate until the end of 2021 being well below the historical 77% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% annually. So it's pretty clear that, while Immatics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Immatics. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Immatics. Long-term earnings power is much more important than next year's profits. We have forecasts for Immatics going out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Immatics that you should be aware of.

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