Some Analysts Just Cut Their HOOKIPA Pharma Inc. (NASDAQ:HOOK) Estimates

One thing we could say about the analysts on HOOKIPA Pharma Inc. (NASDAQ:HOOK) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from HOOKIPA Pharma's seven analysts is for revenues of US$15m in 2023, which would reflect a measurable 4.4% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$1.10 per share. However, before this estimates update, the consensus had been expecting revenues of US$19m and US$1.09 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

View our latest analysis for HOOKIPA Pharma

There was no real change to the consensus price target of US$4.46, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on HOOKIPA Pharma's valuation.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2023 compared to the historical decline of 11% per annum over the past three years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 15% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect HOOKIPA Pharma to suffer worse than the wider industry.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that HOOKIPA Pharma's revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of HOOKIPA Pharma going forwards.

There might be good reason for analyst bearishness towards HOOKIPA Pharma, like major dilution from new stock issuance in the past year. Learn more, and discover the 3 other flags 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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