Analysts Have Been Trimming Their CeriBell, Inc. (NASDAQ:CBLL) Price Target After Its Latest Report

As you might know, CeriBell, Inc. (NASDAQ:CBLL) just kicked off its latest quarterly results with some very strong numbers. Revenues beat expectations coming in atUS$23m, ahead of estimates by 3.7%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.37 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CeriBell after the latest results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest results, CeriBell's eight analysts are now forecasting revenues of US$112.4m in 2026. This would be a substantial 36% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around US$1.44. Before this latest report, the consensus had been expecting revenues of US$111.5m and US$1.43 per share in losses.

See our latest analysis for CeriBell

The analysts trimmed their valuations, with the average price target falling 5.0% to US$27.00, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CeriBell, with the most bullish analyst valuing it at US$36.00 and the most bearish at US$17.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CeriBell's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 28% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% per year. So it's pretty clear that, while CeriBell's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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.

With that in mind, we wouldn't be too quick to come to a conclusion on CeriBell. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CeriBell analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for CeriBell that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.