Wall Street Analysts Think Atara Biotherapeutics (ATRA) Could Surge 33.03%: Read This Before Placing a Bet

Core Viewpoint - Atara Biotherapeutics (ATRA) shares have increased by 11.4% in the past four weeks, closing at $8.72, with a potential upside indicated by Wall Street analysts' mean price target of$11.60, suggesting a 33% increase from the current price [1] Price Targets and Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $5.81, indicating variability among analysts; the lowest estimate is$5, suggesting a 42.7% decline, while the highest target is $18, indicating a potential surge of 106.4% [2] - A tight clustering of price targets, represented by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement direction [7] Earnings Estimates - Analysts show growing optimism regarding ATRA's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with near-term stock price movements [9] - The Zacks Consensus Estimate for the current year has increased by 23.9% over the past month, with one estimate rising and no negative revisions [10] - ATRA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [11] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as empirical research shows that these targets often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]