CytomX Therapeutics (NASDAQ:CTMX) saw its stock plummet by 7.80% in pre-market trading on Thursday, following a substantial negative revision to the company's forecasts by analysts. The dramatic downgrade has raised serious concerns about the biotech firm's future performance and financial outlook.
According to the latest analyst reports, CytomX Therapeutics is now expected to face a significant decline in revenues and potentially slip into loss-making territory. Analysts have revised their 2026 revenue forecasts downwards from US$50 million to US$31 million, representing a painful 73% decline in sales compared to the previous year. Additionally, earnings per share (EPS) forecasts have been adjusted, with analysts now predicting losses of US$0.40 per share in 2026, compared to the earlier estimate of US$0.27 per share loss.
The downgrade paints a grim picture for CytomX Therapeutics' growth trajectory. While the broader industry is anticipated to see revenue growth of 22% annually for the foreseeable future, CytomX is expected to experience a significant contraction. This pessimistic outlook has clearly spooked investors, resulting in the pre-market plunge as traders reassess their positions in light of the company's challenging future. Despite the gloomy forecast, analysts have surprisingly lifted their price target by 15% to US$7.07, adding an element of confusion to the market's interpretation of CytomX's prospects.
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