Solid Power, Inc. (NASDAQ:SLDP) Released Earnings Last Week And Analysts Lifted Their Price Target To US$4.00

Solid Power, Inc. (NASDAQ:SLDP) just released its latest third-quarter results and things are looking bullish. Results clearly exceeded expectations, with a substantial revenue beat leading to smaller losses in what looks like a definite win for investors. Revenues were US$4.6m and the statutory loss per share was US$0.14, smaller than the analyst had forecast. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Taking into account the latest results, the current consensus from Solid Power's one analyst is for revenues of US$22.7m in 2026. This would reflect a notable 15% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$0.51. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$23.6m and losses of US$0.50 per share in 2026.

Check out our latest analysis for Solid Power

The analyst lifted their price target 167% to US$4.00per share, with reduced revenue estimates seemingly not expected to have a long-term impact on the intrinsic value of the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Solid Power's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 40% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that Solid Power is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 2 warning signs for Solid Power that 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.