Celebrations may be in order for Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

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Following the upgrade, the latest consensus from Tarsus Pharmaceuticals' six analysts is for revenues of US$413m in 2025, which would reflect a sizeable 77% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 60% to US$1.00 per share. However, before this estimates update, the consensus had been expecting revenues of US$365m and US$1.43 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 Tarsus Pharmaceuticals NasdaqGS:TARS Earnings and Revenue Growth May 4th 2025

There was no major change to the consensus price target of US$72.50, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tarsus Pharmaceuticals' past performance and to peers in the same industry. The analysts are definitely expecting Tarsus Pharmaceuticals' growth to accelerate, with the forecast 114% annualised growth to the end of 2025 ranking favourably alongside historical growth of 55% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tarsus Pharmaceuticals to grow faster 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 Tarsus Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than 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 Tarsus Pharmaceuticals.

Story Continues

Better yet, Tarsus Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, for free  on our platform here.

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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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