Industry Analysts Just Upgraded Their PTC Therapeutics, Inc. (NASDAQ:PTCT) Revenue Forecasts By 11%

Celebrations may be in order for PTC Therapeutics, Inc. (NASDAQ:PTCT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that PTC Therapeutics will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on PTC Therapeutics too, with the stock up 15% to US$38.85 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the latest upgrade, the twelve analysts covering PTC Therapeutics provided consensus estimates of US$749m revenue in 2024, which would reflect a definite 19% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 31% to US$5.20 per share. However, before this estimates update, the consensus had been expecting revenues of US$672m and US$5.76 per share in losses. 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.

View our latest analysis for PTC Therapeutics

It will come as no surprise to learn that the analysts have increased their price target for PTC Therapeutics 22% to US$35.91 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PTC Therapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 25% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 26% 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 18% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PTC Therapeutics is expected to lag the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting PTC Therapeutics is moving incrementally towards profitability. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at PTC Therapeutics.

Analysts are definitely bullish on PTC Therapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 3 other warning signs we've identified, for 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 backed by insiders.

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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.