Industry Analysts Just Upgraded Their iTeos Therapeutics, Inc. (NASDAQ:ITOS) Revenue Forecasts By 16%

Celebrations may be in order for iTeos Therapeutics, Inc. (NASDAQ:ITOS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that iTeos Therapeutics will make substantially more sales than they'd previously expected.

Following the latest upgrade, the five analysts covering iTeos Therapeutics provided consensus estimates of US$18m revenue in 2023, which would reflect a disturbing 86% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$15m in 2023. It looks like there's been a clear increase in optimism around iTeos Therapeutics, given the solid increase in revenue forecasts.

View our latest analysis for iTeos Therapeutics

There was no particular change to the consensus price target of US$40.12, with iTeos Therapeutics' latest outlook seemingly not enough to result in a change of valuation. 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. The most optimistic iTeos Therapeutics analyst has a price target of US$53.58 per share, while the most pessimistic values it at US$32.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 sales are expected to reverse, with a forecast 93% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 84% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 19% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - iTeos Therapeutics is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for iTeos Therapeutics this year. They also expect company revenue to perform worse 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 iTeos Therapeutics.

Of course, there's always more to the story. We have analyst estimates for iTeos Therapeutics going out to 2025, and you can see them 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 that insiders are buying.

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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.