Industry Analysts Just Made A Meaningful Upgrade To Their Mersana Therapeutics, Inc. (NASDAQ:MRSN) Revenue Forecasts

Shareholders in Mersana Therapeutics, Inc. (NASDAQ:MRSN) 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 Mersana Therapeutics will make substantially more sales than they'd previously expected.

Following the latest upgrade, the ten analysts covering Mersana Therapeutics provided consensus estimates of US$27m revenue in 2025, which would reflect a painful 33% decline on its sales over the past 12 months. Losses are supposed to balloon 27% to US$0.71 per share. However, before this estimates update, the consensus had been expecting revenues of US$23m and US$0.71 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

Check out our latest analysis for Mersana Therapeutics

Analysts trimmed their valuations, with the average price target falling 13% to US$4.71, with the ongoing losses clearly weighing on sentiment despite the upgraded revenue estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 33% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 42% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 20% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Mersana Therapeutics is expected to lag the wider 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 Mersana Therapeutics' prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Mersana Therapeutics' future valuation. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Mersana Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Mersana Therapeutics analysts - going out to 2027, and you can see them free on our platform here.

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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.