Industry Analysts Just Made An Upgrade To Their Intellia Therapeutics, Inc. (NASDAQ:NTLA) Revenue Forecasts

Celebrations may be in order for Intellia Therapeutics, Inc. (NASDAQ:NTLA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

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After the upgrade, the 23 analysts covering Intellia Therapeutics are now predicting revenues of US$50m in 2025. If met, this would reflect a meaningful 9.8% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 14% per share from last year to US$4.35. Yet before this consensus update, the analysts had been forecasting revenues of US$49m and losses of US$4.71 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

See our latest analysis for Intellia Therapeutics

There's been no major changes to the consensus price target of US$40.56, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Intellia Therapeutics' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.03% 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. It seems obvious that, while the future growth outlook is brighter than the recent past, Intellia Therapeutics is expected to grow slower than 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 Intellia Therapeutics' prospects. There were no major changes to revenue forecasts, with analysts still expecting the business to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Intellia Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Intellia Therapeutics 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.