Analysts Are Betting On Zymeworks Inc. (NASDAQ:ZYME) With A Big Upgrade This Week

Zymeworks Inc. (NASDAQ:ZYME) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Zymeworks will make substantially more sales than they'd previously expected.

After this upgrade, Zymeworks' eight analysts are now forecasting revenues of US$106m in 2024. This would be a major 69% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$95m in 2024. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

Check out our latest analysis for Zymeworks

We'd point out that there was no major changes to their price target of US$14.19, suggesting the latest estimates were not enough to shift their view on the value of the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zymeworks' past performance and to peers in the same industry. The analysts are definitely expecting Zymeworks' growth to accelerate, with the forecast 187% annualised growth to the end of 2024 ranking favourably alongside historical growth of 44% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zymeworks to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Zymeworks this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Zymeworks.

Analysts are clearly in love with Zymeworks at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 2 other risks we've identified, for 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 backed by insiders.

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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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