Pacific Edge Limited (NZSE:PEB) Just Reported And Analysts Have Been Lifting Their Price Targets

The full-year results for Pacific Edge Limited (NZSE:PEB) were released last week, making it a good time to revisit its performance. Results overall were mixed; even though revenues of NZ$25m beat expectations by 13%, statutory losses were NZ$0.037 per share, 11% larger than what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the recent earnings report, the consensus from twin analysts covering Pacific Edge is for revenues of NZ$13.0m in 2026. This implies a painful 47% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 27% to NZ$0.027. Yet prior to the latest earnings, the analysts had been forecasting revenues of NZ$13.0m and losses of NZ$0.023 per share in 2026. So it's pretty clear the analysts have mixed opinions on Pacific Edge even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

Check out our latest analysis for Pacific Edge

Although the analysts are now forecasting higher losses, the average price target rose 8.3% to 0.12, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pacific Edge's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 47% annualised decline to the end of 2026. That is a notable change from historical growth of 29% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pacific Edge is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Pacific Edge (1 is potentially serious) you should be aware of.

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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.