US$65.33 - That's What Analysts Think Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) Is Worth After These Results

Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) just released its quarterly report and things are looking bullish. The results overall were pretty good, with revenues of US$48m exceeding expectations and statutory losses coming in at justUS$0.61 per share, some 33% below what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Tarsus Pharmaceuticals

Taking into account the latest results, the consensus forecast from Tarsus Pharmaceuticals' seven analysts is for revenues of US$305.5m in 2025. This reflects a major 136% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 50% to US$1.75. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$291.2m and losses of US$1.66 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a moderate increase in its losses per share forecasts.

The average price target rose 10% to US$65.33, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Tarsus Pharmaceuticals analyst has a price target of US$84.00 per share, while the most pessimistic values it at US$41.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Tarsus Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 99% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 42% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tarsus Pharmaceuticals to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Tarsus Pharmaceuticals going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Tarsus Pharmaceuticals that you need to take into consideration.

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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.