Need To Know: Analysts Are Much More Bullish On Mirati Therapeutics, Inc. (NASDAQ:MRTX) Revenues

Mirati Therapeutics, Inc. (NASDAQ:MRTX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Mirati Therapeutics will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Mirati Therapeutics' 15 analysts is for revenues of US$67m in 2023 which - if met - would reflect a substantial 254% increase on its sales over the past 12 months. Losses are forecast to hold steady at around US$12.78. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$54m and losses of US$13.73 per share in 2023. 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.

Check out our latest analysis for Mirati Therapeutics

There was no major change to the consensus price target of US$69.80, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Mirati Therapeutics at US$106 per share, while the most bearish prices it at US$50.00. 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. It's clear from the latest estimates that Mirati Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 40% p.a. 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 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mirati Therapeutics 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 Mirati Therapeutics' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 Mirati Therapeutics.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mirati Therapeutics going out to 2025, and you can see them 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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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.