Eos Energy Enterprises, Inc. (NASDAQ:EOSE) Analysts Are Pretty Bullish On The Stock After Recent Results

It's shaping up to be a tough period for Eos Energy Enterprises, Inc. (NASDAQ:EOSE), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. It was not a great statutory result, with revenues coming in 23% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$4.91. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the six analysts covering Eos Energy Enterprises are now predicting revenues of US$459.0m in 2026. If met, this would reflect a sizeable 623% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 96% to US$0.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$456.3m and losses of US$0.35 per share in 2026. Although the revenue estimates have not really changed Eos Energy Enterprises'future looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.

See our latest analysis for Eos Energy Enterprises

These new estimates led to the consensus price target rising 46% to US$14.07, with lower forecast losses suggesting things could be looking up for Eos Energy Enterprises. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Eos Energy Enterprises at US$22.00 per share, while the most bearish prices it at US$6.50. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Eos Energy Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 47% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Eos Energy Enterprises is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Eos Energy Enterprises going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 5 warning signs for Eos Energy Enterprises (of which 2 are concerning!) 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.