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Celebrations may be in order for Arcellx, Inc. (NASDAQ:ACLX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After the upgrade, the eleven analysts covering Arcellx are now predicting revenues of US$59m in 2023. If met, this would reflect a major 84% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 39% to US$2.31. Yet before this consensus update, the analysts had been forecasting revenues of US$53m and losses of US$2.40 per share in 2023. 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 Arcellx
Despite these upgrades, the analysts have not made any major changes to their price target of US$52.27, implying that their latest estimates don't have a long term impact on what they think the stock is worth.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Arcellx is moving incrementally towards profitability. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Arcellx.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Arcellx analysts - going out to 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.