Analyst Estimates: Here's What Brokers Think Of CVRx, Inc. (NASDAQ:CVRX) After Its Third-Quarter Report

The investors in CVRx, Inc.'s (NASDAQ:CVRX) will be rubbing their hands together with glee today, after the share price leapt 30% to US$13.12 in the week following its third-quarter results. Revenues were in line with expectations, at US$13m, while statutory losses ballooned to US$0.57 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for CVRx

Taking into account the latest results, the consensus forecast from CVRx's six analysts is for revenues of US$65.6m in 2025. This reflects a substantial 39% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 11% from last year to US$2.15. Before this earnings announcement, the analysts had been modelling revenues of US$65.9m and losses of US$2.07 per share in 2025. So it's pretty clear consensus is mixed on CVRx after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

As a result, there was no major change to the consensus price target of US$14.17, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CVRx analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$12.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 CVRx's revenue growth is expected to slow, with the forecast 30% annualised growth rate until the end of 2025 being well below the historical 44% 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 8.3% annually. Even after the forecast slowdown in growth, it seems obvious that CVRx is also expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on CVRx. Long-term earnings power is much more important than next year's profits. We have forecasts for CVRx going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for CVRx that we have uncovered.

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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.