Broker Revenue Forecasts For Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) Are Surging Higher

Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the eleven analysts covering Zentalis Pharmaceuticals provided consensus estimates of US$36m revenue in 2024, which would reflect a not inconsiderable 10% decline on its sales over the past 12 months. Losses are presumed to reduce, shrinking 12% per share from last year to US$2.71. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$33m and losses of US$2.70 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

Check out our latest analysis for Zentalis Pharmaceuticals

The consensus price target fell 59% to US$13.70 asthe analysts signal that ongoing losses are likely to weigh on the stock price.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 172% 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 18% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Zentalis Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Zentalis Pharmaceuticals is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Zentalis Pharmaceuticals.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Zentalis Pharmaceuticals going out to 2026, 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.

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