News Flash: Analysts Just Made A Substantial Upgrade To Their Tango Therapeutics, Inc. (NASDAQ:TNGX) Forecasts
Celebrations may be in order for Tango Therapeutics, Inc. (NASDAQ:TNGX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Tango Therapeutics will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 121% to US$7.51 in the last 7 days. Could this upgrade be enough to drive the stock even higher?
Following the latest upgrade, Tango Therapeutics' five analysts currently expect revenues in 2023 to be US$34m, approximately in line with the last 12 months. Per-share losses are expected to creep up to US$1.24. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$27m and losses of US$1.27 per share in 2023. 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.
See our latest analysis for Tango Therapeutics
It will come as no surprise to learn that the analysts have increased their price target for Tango Therapeutics 15% to US$16.83 on the back of these upgrades.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.7% by the end of 2023. This indicates a significant reduction from annual growth of 40% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 15% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Tango Therapeutics is expected to lag the wider 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 Tango Therapeutics' prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Tango Therapeutics.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Tango Therapeutics 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.
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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.
