Yahoo Finance Broker Revenue Forecasts For Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) Are Surging Higher
Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 5.6% over the past week, closing at US$50.06. 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 Deciphera Pharmaceuticals' ten analysts is for revenues of US$114m in 2021, which would reflect a major 172% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 12% from last year to US$4.20. Yet before this consensus update, the analysts had been forecasting revenues of US$99m and losses of US$4.45 per share in 2021. 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.
View our latest analysis for Deciphera Pharmaceuticals
There was no major change to the consensus price target of US$73.91, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. 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. There are some variant perceptions on Deciphera Pharmaceuticals, with the most bullish analyst valuing it at US$91.00 and the most bearish at US$65.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Deciphera Pharmaceuticals shareholders.
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. It's clear from the latest estimates that Deciphera Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 172% revenue growth noticeably faster than its historical growth of 68% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Deciphera Pharmaceuticals is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Deciphera Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Deciphera Pharmaceuticals.
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 Deciphera Pharmaceuticals going out to 2025, and you can see them free on our platform here..
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
