Industry Analysts Just Made A Sizeable Upgrade To Their Turning Point Therapeutics, Inc. (NASDAQ:TPTX) Revenue Forecasts

Celebrations may be in order for Turning Point Therapeutics, Inc. (NASDAQ:TPTX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the consensus from nine analysts covering Turning Point Therapeutics is for revenues of US$30m in 2021, implying a sizeable 45% decline in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$4.49 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$26m and losses of US$4.64 per share in 2021. 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 Turning Point Therapeutics

Despite these upgrades, the analysts have not made any major changes to their price target of US$153, implying that their latest estimates don't have a long term impact on what they think the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Turning Point Therapeutics, with the most bullish analyst valuing it at US$178 and the most bearish at US$120 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Turning Point Therapeutics shareholders.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Turning Point Therapeutics is moving incrementally towards profitability. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Turning Point Therapeutics.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Turning Point Therapeutics analysts - going out to 2023, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

When trading Turning Point Therapeutics or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.