US$2.00: That's What Analysts Think Solid Power, Inc. (NASDAQ:SLDP) Is Worth After Its Latest Results

Solid Power, Inc. (NASDAQ:SLDP) just released its latest third-quarter results and things are looking bullish. Overall results were decent, with revenues of US$4.7m beating estimates by43%. Statutory losses were subsequently less thanthe analysts had expected, at US$0.13 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Solid Power

Taking into account the latest results, the current consensus from Solid Power's two analysts is for revenues of US$34.2m in 2025. This would reflect a substantial 90% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 18% from last year to US$0.39. Before this latest report, the consensus had been expecting revenues of US$32.8m and US$0.48 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a favorable reduction in loss per share in particular.

Yet despite these upgrades, the analysts cut their price target 43% to US$2.00, implicitly signalling that the ongoing losses are likely to weigh negatively on Solid Power's valuation.

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. It's clear from the latest estimates that Solid Power's rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 51% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Solid Power is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. 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 least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Solid Power 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.