New Forecasts: Here's What Analysts Think The Future Holds For Sutro Biopharma, Inc. (NASDAQ:STRO)

Sutro Biopharma, Inc. (NASDAQ:STRO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Sutro Biopharma has also found favour with investors, with the stock up a noteworthy 25% to US$6.73 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the latest consensus from Sutro Biopharma's nine analysts is for revenues of US$77m in 2022, which would reflect a substantial 44% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$2.58. However, before this estimates update, the consensus had been expecting revenues of US$51m and US$2.94 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.

See our latest analysis for Sutro Biopharma

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Sutro Biopharma's growth to accelerate, with the forecast 107% annualised growth to the end of 2022 ranking favourably alongside historical growth of 11% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sutro Biopharma to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Sutro Biopharma is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Sutro Biopharma.

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 Sutro Biopharma going out to 2024, 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.