January 15, 2021


Bicycle Therapeutics (NASDAQ:BCYC) was downgraded by research analysts at BidaskClub from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, BidAskClub reports.

A number of other analysts have also weighed in on the stock. Zacks Investment Research raised shares of Bicycle Therapeutics from a “sell” rating to a “hold” rating in a report on Friday, November 6th. Canaccord Genuity upped their price target on shares of Bicycle Therapeutics from $23.50 to $25.00 and gave the stock a “buy” rating in a report on Thursday, September 10th. Oppenheimer reissued a “buy” rating and set a $27.00 price objective on shares of Bicycle Therapeutics in a research note on Tuesday, September 22nd. Cantor Fitzgerald started coverage on Bicycle Therapeutics in a research note on Monday, October 12th. They issued an “overweight” rating and a $30.00 target price on the stock. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $25.00 price target on shares of Bicycle Therapeutics in a report on Thursday, August 6th. Three equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $23.67.

Bicycle Therapeutics stock opened at $20.78 on Wednesday. The firm has a market capitalization of $367.72 million, a P/E ratio of -10.04 and a beta of -0.35. Bicycle Therapeutics has a one year low of $7.50 and a one year high of $21.59. The company has a debt-to-equity ratio of 0.13, a current ratio of 9.63 and a quick ratio of 9.63. The business has a fifty day moving average price of $18.97 and a 200-day moving average price of $17.19.

Bicycle Therapeutics (NASDAQ:BCYC) last issued its earnings results on Thursday, November 5th. The company reported ($0.52) EPS for the quarter, hitting the consensus estimate of ($0.52). Bicycle Therapeutics had a negative return on equity of 42.73% and a negative net margin of 321.26%. Sell-side analysts expect that Bicycle Therapeutics will post -2.46 earnings per share for the current fiscal year.

A number of hedge funds have recently modified their holdings of BCYC. FMR LLC bought a new position in shares of Bicycle Therapeutics during the 2nd quarter valued at about $3,277,000. Morgan Stanley boosted its stake in Bicycle Therapeutics by 32,450.0% in the first quarter. Morgan Stanley now owns 3,255 shares of the company’s stock worth $44,000 after buying an additional 3,245 shares in the last quarter. UBS Group AG bought a new position in Bicycle Therapeutics during the second quarter valued at approximately $36,000. Advisor Group Holdings Inc. raised its stake in shares of Bicycle Therapeutics by 34,000.0% during the second quarter. Advisor Group Holdings Inc. now owns 34,100 shares of the company’s stock worth $537,000 after acquiring an additional 34,000 shares in the last quarter. Finally, California Public Employees Retirement System lifted its holdings in shares of Bicycle Therapeutics by 8.5% in the 3rd quarter. California Public


Celebrations may be in order for Bicycle Therapeutics plc (NASDAQ:BCYC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the current consensus, from the seven analysts covering Bicycle Therapeutics, is for revenues of US$9.9m in 2021, which would reflect a chunky 16% reduction in Bicycle Therapeutics’ sales over the past 12 months. Before the latest update, the analysts were foreseeing US$8.3m of revenue in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

earnings-and-revenue-growthNasdaqGS:BCYC Earnings and Revenue Growth November 10th 2020

The consensus price target rose 8.4% to US$27.71, with the analysts clearly more optimistic about Bicycle Therapeutics’ prospects following this update. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Bicycle Therapeutics analyst has a price target of US$35.00 per share, while the most pessimistic values it at US$22.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 16%, a significant reduction from annual growth of 31% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 21% next year. It’s pretty clear that Bicycle Therapeutics’ revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Bicycle Therapeutics next year. They’re also anticipating slower revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Bicycle Therapeutics.

Analysts are definitely bullish on Bicycle Therapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we’ve identified .

Of course, seeing company management invest large sums of money in a stock can be just