HLS Therapeutics Inc. (TSE:HLS) Just Reported, And Analysts Assigned A CA$6.80 Price Target

The analysts might have been a bit too bullish on HLS Therapeutics Inc. (TSE:HLS), given that the company fell short of expectations when it released its quarterly results last week. It was a pretty negative result overall, with revenues of US$14m missing analyst predictions by 6.2%. Worse, the business reported a statutory loss of US$0.12 per share, much larger than the analysts had forecast prior to the result. 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.

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After the latest results, the four analysts covering HLS Therapeutics are now predicting revenues of US$61.7m in 2026. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 66% to US$0.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$63.4m and losses of US$0.18 per share in 2026. Although the revenue estimates have fallen somewhat, HLS Therapeutics'future looks a little different to the past, with a notable improvement in the loss per share forecasts in particular.

Check out our latest analysis for HLS Therapeutics

The analysts have cut their price target 9.4% to CA$6.80per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic HLS Therapeutics analyst has a price target of CA$9.65 per share, while the most pessimistic values it at CA$4.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HLS Therapeutics' past performance and to peers in the same industry. For example, we noticed that HLS Therapeutics' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.4% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.04% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So although HLS Therapeutics' revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 HLS Therapeutics going out to 2027, and you can see them free on our platform here..

Even so, be aware that HLS Therapeutics is showing 1 warning sign in our investment analysis , you should know about...

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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.