Immutep Limited (ASX: IMM): Are analysts optimistic?


Immutep Limited (ASX: IMM) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. Immutep Limited, a biotechnology company, engages in the research and development of drug candidates. The A $ 442 million market-capitalization company reported a final loss of A $ 30 million on June 30, 2021 for its latest result for the year. The most pressing concern for investors is Immutep’s path to profitability – when will it break even? In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.

See our latest review for Immutep

According to the 3 industry analysts covering Immutep, the consensus is that the breakeven point is near. They predict that the company will experience a terminal loss in 2023, before generating positive profits of AU $ 36 million in 2024. The company is therefore expected to break even in about 3 years. How fast will the business need to grow each year to break even by 2024? Looking back at analysts’ estimates, it turns out that they expect an average growth of 64% year over year, indicating high analyst confidence. If the business grows at a slower pace, it will become profitable later than expected.

earnings per share growth

We are not going to go over company specific developments for Immutep as this is a high level summary, but keep in mind that generally biotechnology, depending on the stage of development of the product, have irregular cash periods. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to point out is that the company has managed its capital prudently, with debt accounting for 3.4% of equity. This means that it has mainly financed its operations from equity and its low debt reduces the risk of investing in the loss-making company.

Next steps:

There are some fundamentals of Immutep that are not covered in this article, but we have to stress again that this is just a basic overview. For a more complete overview of Immutep, check out Immutep’s company page on Simply Wall St. We’ve also put together a list of key factors to consider:

  1. Evaluation: What is Immutep worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Immutep is currently poorly valued by the market.

  2. Management team: An experienced management team at the helm increases our confidence in the company – take a look at Immutep’s board members and CEO’s background.

  3. Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

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