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Curis, Inc. (NASDAQ:CRIS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.
Following this upgrade, Curis' five analysts are forecasting 2025 revenues to be US$11m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 38% to US$3.17 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$8.5m and losses of US$4.19 per share in 2025. 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.
See our latest analysis for Curis
The consensus price target fell 12%, to US$18.50, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.
Of course, another way to look at these forecasts is to place them into context against the industry itself. From these estimates it looks as though the analysts expect the years of declining sales to come to an end, given the flat revenue forecast out to 2025. That would be a definite improvement, given that the past five years have seen sales shrink 1.1% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 19% per year. Although Curis' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Curis is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The declining price target is a puzzle, but still - with a serious upgrade to this year's expectations, it might be time to take another look at Curis.
Analysts are definitely bullish on Curis, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 3 other concerns we've identified, for free on our platform here.