New Forecasts: Here's What Analysts Think The Future Holds For Repare Therapeutics Inc. (NASDAQ:RPTX)

Repare Therapeutics Inc. (NASDAQ:RPTX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Repare Therapeutics has also found favour with investors, with the stock up a notable 19% to US$9.74 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the consensus from Repare Therapeutics' nine analysts is for revenues of US$65m in 2023, which would reflect a disturbing 61% decline in sales compared to the last year of performance. Losses are supposed to balloon 3,205% to US$2.42 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$45m and losses of US$2.82 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for Repare Therapeutics

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Repare Therapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 85% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 128% over the last three 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 - Repare Therapeutics is expected to lag 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 Repare Therapeutics' prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. More bullish expectations could be a signal for investors to take a closer look at Repare Therapeutics.

Still, 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 Repare 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.