US$10.43: That's What Analysts Think Tango Therapeutics, Inc. (NASDAQ:TNGX) Is Worth After Its Latest Results

The analysts might have been a bit too bullish on Tango Therapeutics, Inc. (NASDAQ:TNGX), given that the company fell short of expectations when it released its first-quarter results last week. Revenues came in at US$5.4m, missing analyst expectations by 20%. Statutory losses per share fell slightly short, coming in at US$0.36, 2.4% below what the analysts had predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the seven analysts covering Tango Therapeutics, is for revenues of US$28.1m in 2025. This implies a substantial 31% reduction in Tango Therapeutics' revenue over the past 12 months. Per-share losses are predicted to creep up to US$1.29. Before this latest report, the consensus had been expecting revenues of US$29.1m and US$1.38 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

View our latest analysis for Tango Therapeutics

The consensus price target fell 5.2% to US$10.43, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Tango Therapeutics at US$13.00 per share, while the most bearish prices it at US$8.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 39% by the end of 2025. This indicates a significant reduction from annual growth of 18% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Tango Therapeutics is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Tango Therapeutics' future valuation.

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 estimates - from multiple Tango Therapeutics analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Tango Therapeutics you should know about.

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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.