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Growth Investors: Industry Analysts Just Upgraded Their C4 Therapeutics, Inc. (NASDAQ:CCCC) Revenue Forecasts By 16%

Shareholders in C4 Therapeutics, Inc. (NASDAQ:CCCC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that C4 Therapeutics will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on C4 Therapeutics too, with the stock up 16% to US$11.70 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the latest upgrade, the current consensus, from the eleven analysts covering C4 Therapeutics, is for revenues of US$39m in 2022, which would reflect a painful 21% reduction in C4 Therapeutics' sales over the past 12 months. Per-share losses are expected to explode, reaching US$2.68 per share. However, before this estimates update, the consensus had been expecting revenues of US$34m and US$2.77 per share in losses. 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.

See our latest analysis for C4 Therapeutics

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earnings-and-revenue-growth

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the C4 Therapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 38% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 48% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. It's pretty clear that C4 Therapeutics' revenues are expected to perform substantially worse 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 C4 Therapeutics' prospects. 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 this year's forecasts, it might be time to take another look at C4 Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for C4 Therapeutics going out to 2024, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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