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One thing we could say about the analysts on Coherus BioSciences, Inc. (NASDAQ:CHRS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
After this downgrade, Coherus BioSciences' eight analysts are now forecasting revenues of US$299m in 2023. This would be a major 63% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 33% to US$2.24. However, before this estimates update, the consensus had been expecting revenues of US$342m and US$1.43 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for Coherus BioSciences
The consensus price target was broadly unchanged at US$17.56, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Coherus BioSciences analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$9.00. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Coherus BioSciences' growth to accelerate, with the forecast 92% annualised growth to the end of 2023 ranking favourably alongside historical growth of 22% 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 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Coherus BioSciences to grow faster than the wider industry.