Innate Pharma S.A. (EPA:IPH) Just Reported And Analysts Have Been Lifting Their Price Targets
Last week saw the newest interim earnings release from Innate Pharma S.A. (EPA:IPH), an important milestone in the company's journey to build a stronger business. Revenues fell badly short of expectations, with revenue of €5.7m, missing analyst estimates by 21%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the five analysts covering Innate Pharma are now predicting revenues of €54.9m in 2026. If met, this would reflect a huge 460% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Innate Pharma forecast to report a statutory profit of €0.48 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €55.3m and earnings per share (EPS) of €0.77 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
View our latest analysis for Innate Pharma
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 10% to €5.90, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Innate Pharma at €6.20 per share, while the most bearish prices it at €5.60. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Innate Pharma's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 30x growth to the end of 2026 on an annualised basis. That is well above its historical decline of 28% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 55% annually. Not only are Innate Pharma's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Innate Pharma. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Innate Pharma going out to 2028, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Innate Pharma , and understanding them should be part of your investment process.
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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.