In This Article:
Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Tarsus Pharmaceuticals will make substantially more sales than they'd previously expected. The stock price has risen 9.2% to US$17.47 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the upgrade, the latest consensus from Tarsus Pharmaceuticals' six analysts is for revenues of US$57m in 2024, which would reflect a huge 299% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$4.90 per share. However, before this estimates update, the consensus had been expecting revenues of US$49m and US$5.07 per share in losses. 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 Tarsus Pharmaceuticals
Despite these upgrades, the analysts have not made any major changes to their price target of US$46.13, implying that their latest estimates don't have a long term impact on what they think the stock is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Tarsus Pharmaceuticals' growth to accelerate, with the forecast 203% annualised growth to the end of 2024 ranking favourably alongside historical growth of 28% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tarsus Pharmaceuticals to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Tarsus Pharmaceuticals' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Tarsus Pharmaceuticals.