These Analysts Think Silence Therapeutics plc's (NASDAQ:SLN) Sales Are Under Threat

Market forces rained on the parade of Silence Therapeutics plc (NASDAQ:SLN) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the current consensus, from the six analysts covering Silence Therapeutics, is for revenues of UK£15m in 2025, which would reflect a disturbing 65% reduction in Silence Therapeutics' sales over the past 12 months. Before the latest update, the analysts were foreseeing UK£25m of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on Silence Therapeutics, given the sizeable cut to revenue estimates.

See our latest analysis for Silence Therapeutics

The consensus price target fell 15% to US$39.65, with the analysts clearly less optimistic about Silence Therapeutics' valuation following this update.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Silence Therapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 65% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 40% 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 20% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Silence Therapeutics is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Silence Therapeutics this year. They're also anticipating slower revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Silence Therapeutics after today.

Looking to learn more? We have estimates for Silence Therapeutics from its six analysts out until 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.