Analysts Just Shipped A Captivating Upgrade To Their Kura Oncology, Inc. (NASDAQ:KURA) Estimates

Kura Oncology, Inc. (NASDAQ:KURA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

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Following the upgrade, the current consensus from Kura Oncology's 13 analysts is for revenues of US$159m in 2025 which - if met - would reflect a sizeable 134% increase on its sales over the past 12 months. Losses are presumed to reduce, shrinking 19% per share from last year to US$1.70. However, before this estimates update, the consensus had been expecting revenues of US$133m and US$1.96 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for Kura Oncology

Yet despite these upgrades, the analysts cut their price target 6.3% to US$26.25, implicitly signalling that the ongoing losses are likely to weigh negatively on Kura Oncology's valuation.

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. The analysts are definitely expecting Kura Oncology's growth to accelerate, with the forecast 211% annualised growth to the end of 2025 ranking favourably alongside historical growth of 104% per annum 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kura Oncology is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Kura Oncology's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The declining price target is a puzzle, but still - with a serious upgrade to this year's expectations, it might be time to take another look at Kura Oncology.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Kura Oncology analysts - going out to 2027, 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 with high insider ownership.

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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.