Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Tarsus Pharmaceuticals will make substantially more sales than they'd previously expected.

After the upgrade, the seven analysts covering Tarsus Pharmaceuticals are now predicting revenues of US$140m in 2024. If met, this would reflect a substantial 228% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$3.88 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$103m and losses of US$4.22 per share in 2024. 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.

It will come as no surprise to learn that the analysts have increased their price target for Tarsus Pharmaceuticals 6.4% to US$55.78 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Tarsus Pharmaceuticals is forecast to grow faster in the future than it has in the past, with revenues expected to display 4x annualised growth until the end of 2024. If achieved, this would be a much better result than the 30% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.3% annually. Not only are Tarsus Pharmaceuticals' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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 Tarsus Pharmaceuticals' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Tarsus Pharmaceuticals.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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