CytomX Therapeutics (NASDAQ:CTMX) shares tumbled 5.20% in pre-market trading on Thursday, following a substantial negative revision to the company's forecasts by analysts. The downgrade has raised concerns about the biotech firm's future performance and financial outlook.

According to the latest analyst reports, CytomX Therapeutics is now expected to face a significant decline in revenues and potentially slip into loss-making territory. Analysts have revised their 2026 revenue forecasts downwards from US$50 million to US$31 million, representing a painful 73% decline in sales compared to the previous year. Additionally, earnings per share (EPS) forecasts have been adjusted, with analysts now predicting losses of US$0.40 per share in 2026, compared to the earlier estimate of US$0.27 per share loss.

Despite the gloomy outlook, analysts have surprisingly lifted their price target by 15% to US$7.07. However, this increase seems to be at odds with the downgraded forecasts, leaving investors to reassess their investment thesis. The market's negative reaction in pre-market trading suggests that investors are more focused on the potential revenue decline and increased losses rather than the raised price target.