Bearish: This Analyst Is Revising Their Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) Revenue and EPS Prognostications

The latest analyst coverage could presage a bad day for Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, the single analyst covering Pieris Pharmaceuticals provided consensus estimates of US$24m revenue in 2022, which would reflect an uncomfortable 13% decline on its sales over the past 12 months. Losses are expected to be contained, narrowing 16% from last year to US$0.47. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$46m and losses of US$0.41 per share in 2022. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Pieris Pharmaceuticals

The consensus price target fell 13% to US$7.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. We would highlight that sales are expected to reverse, with a forecast 24% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 5.8% 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 15% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pieris Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Pieris Pharmaceuticals' revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Pieris Pharmaceuticals.

As you can see, the covering analyst clearly isn't bullish, and there might be good reason for that. We've identified some potential issues with Pieris Pharmaceuticals' financials, such as dilutive stock issuance over the past year. Learn more, and discover the 2 other warning signs we've identified, for 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 downgrading their estimates. So you may also wish to search this free list of stocks 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.