Protagonist Therapeutics, Inc. (NASDAQ:PTGX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 6.8% over the past week, closing at US$106. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the eleven analysts covering Protagonist Therapeutics are now predicting revenues of US$492m in 2026. If met, this would reflect a sizeable improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$3.72 per share this year. Prior to this update, the analysts had been forecasting revenues of US$491m and earnings per share (EPS) of US$3.65 in 2026. So the consensus seems to have become somewhat more optimistic on Protagonist Therapeutics'earnings potential following these updates.

There's been no major changes to the consensus price target of US$117, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Protagonist Therapeutics' growth to accelerate, with the forecast 12x annualised growth to the end of 2026 ranking favourably alongside historical growth of 40% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Protagonist Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. On the plus side, there were no major changes to revenue estimates; although analyst forecasts do imply revenues will come in ahead of the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Protagonist Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Protagonist Therapeutics analysts - going out to 2028, 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 with high insider ownership.

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.