Need To Know: Analysts Are Much More Bullish On Stoke Therapeutics, Inc. (NASDAQ:STOK) Revenues

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Stoke Therapeutics, Inc. (NASDAQ:STOK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Stoke Therapeutics will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 5.2% over the past week, closing at US$13.05. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After this upgrade, Stoke Therapeutics' nine analysts are now forecasting revenues of US$22m in 2025. This would be a sizeable 31% improvement in sales compared to the last 12 months. Losses are supposed to balloon 24% to US$2.48 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$16m and losses of US$2.53 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Stoke Therapeutics

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NasdaqGS:STOK Earnings and Revenue Growth November 6th 2024

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Stoke Therapeutics' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Stoke Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 63% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 21% annually. So it's pretty clear that, while Stoke Therapeutics' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Stoke Therapeutics' prospects. They also upgraded their revenue forecasts, although the latest estimates suggest that Stoke Therapeutics will grow in line with the overall market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Stoke Therapeutics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Stoke Therapeutics analysts - going out to 2026, and you can see them free on our platform here.

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