US$62.22 - That's What Analysts Think Establishment Labs Holdings Inc. (NASDAQ:ESTA) Is Worth After These Results

A week ago, Establishment Labs Holdings Inc. (NASDAQ:ESTA) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Results overall were solid, with revenues arriving 2.9% better than analyst forecasts at US$54m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.38 per share, were 2.9% smaller than the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Establishment Labs Holdings' nine analysts is for revenues of US$261.1m in 2026. This would reflect a sizeable 37% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 61% to US$1.12. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$259.0m and losses of US$1.13 per share in 2026.

See our latest analysis for Establishment Labs Holdings

The average price target fell 12% to US$62.22, with the ongoing losses seemingly a concern for the analysts, despite the lack of real change to the earnings forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Establishment Labs Holdings, with the most bullish analyst valuing it at US$85.00 and the most bearish at US$45.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Establishment Labs Holdings' growth to accelerate, with the forecast 28% annualised growth to the end of 2026 ranking favourably alongside historical growth of 12% per annum 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 8.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Establishment Labs Holdings to grow faster than the wider industry.

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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Establishment Labs Holdings going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Establishment Labs Holdings 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.