Immunocore Holdings plc (NASDAQ:IMCR) just released its quarterly report and things are looking bullish. Sales crushed expectations at UK£32m, beating expectations by 85%. Immunocore Holdings reported a statutory loss of UK£0.14 per share, which - although not amazing - was much smaller than the analysts predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the seven analysts covering Immunocore Holdings are now predicting revenues of UK£120.3m in 2022. If met, this would reflect a huge 80% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 48% to UK£1.09. Before this earnings announcement, the analysts had been modelling revenues of UK£78.8m and losses of UK£2.08 per share in 2022. 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 thatthe analysts have increased their price target for Immunocore Holdings 9.4% to US$64.60on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Immunocore Holdings analyst has a price target of US$85.00 per share, while the most pessimistic values it at US$32.24. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. It's clear from the latest estimates that Immunocore Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 223% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 139% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Immunocore Holdings to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Immunocore Holdings going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Immunocore Holdings that you need to take into consideration.
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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.
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