Shareholders in Nurix Therapeutics, Inc. (NASDAQ:NRIX) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.
Following the upgrade, the latest consensus from Nurix Therapeutics’ twelve analysts is for revenues of US$64m in 2024, which would reflect a credible 5.6% improvement in sales compared to the last 12 months. Losses are forecast to narrow 3.3% to US$3.16 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$55m and losses of US$3.40 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 next year’s revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Nurix Therapeutics
Despite these upgrades, the analysts have not made any major changes to their price target of US$27.38, implying that their latest estimates don’t have a long term impact on what they think the stock is worth.
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 pretty clear that there is an expectation that Nurix Therapeutics’ revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nurix Therapeutics.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Nurix Therapeutics is moving incrementally towards profitability. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to next year’s forecasts, it might be time to take another look at Nurix 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 Nurix Therapeutics going out to 2025, and you can see them free on our platform here..
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Find out whether Nurix Therapeutics is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
