Analysts Have Been Trimming Their NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) Price Target After Its Latest Report

NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to US$19.22 in the week after its latest quarterly results. Revenue greatly exceeded expectations at US$2.9m, some 82% ahead of analyst forecasts. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 2 warning signs about NewAmsterdam Pharma. View them for free.

Taking into account the latest results, the current consensus, from the ten analysts covering NewAmsterdam Pharma, is for revenues of US$18.4m in 2025. This implies a concerning 61% reduction in NewAmsterdam Pharma's revenue over the past 12 months. Losses are expected to increase slightly, to US$1.73 per share. Before this earnings announcement, the analysts had been modelling revenues of US$17.9m and losses of US$1.96 per share in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a favorable reduction in loss per share in particular.

See our latest analysis for NewAmsterdam Pharma

The consensus price target fell 6.4%, to US$43.48, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic NewAmsterdam Pharma analyst has a price target of US$52.47 per share, while the most pessimistic values it at US$36.69. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NewAmsterdam Pharma shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NewAmsterdam Pharma's past performance and to peers in the same industry. Over the past three years, revenues have declined around 45% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 72% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect NewAmsterdam Pharma to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for NewAmsterdam Pharma going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for NewAmsterdam Pharma you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.