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. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the downgrade, the current consensus from Coherus BioSciences' eight analysts is for revenues of US$339m in 2024 which - if met - would reflect a substantial 61% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$434m in 2024. The consensus view seems to have become more pessimistic on Coherus BioSciences, noting the sizeable cut to revenue estimates in this update.
See our latest analysis for Coherus BioSciences
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Coherus BioSciences' rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.3% p.a. 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 16% 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.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Coherus BioSciences going forwards.
That said, the analysts might have good reason to be negative on Coherus BioSciences, given dilutive stock issuance over the past year. Learn more, and discover the 2 other risks we've identified, for 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.