Industry Analysts Just Upgraded Their Zymeworks Inc. (NASDAQ:ZYME) Revenue Forecasts By 13%

Zymeworks Inc. (NASDAQ:ZYME) 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.

After this upgrade, Zymeworks' seven analysts are now forecasting revenues of US$95m in 2025. This would be a huge 25% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 12% per share from last year to US$1.55. However, before this estimates update, the consensus had been expecting revenues of US$84m and US$1.61 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Zymeworks

There was no major change to the consensus price target of US$19.72, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Zymeworks' revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2025 being well below the historical 33% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 20% annually. Factoring in the forecast slowdown in growth, it looks like Zymeworks is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Zymeworks is moving incrementally towards profitability. They also upgraded their revenue forecasts, although the latest estimates suggest that Zymeworks will grow in line with the overall market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Zymeworks.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Zymeworks going out to 2027, 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.