Earnings Update: Here's Why Analysts Just Lifted Their LeMaitre Vascular, Inc. (NASDAQ:LMAT) Price Target To US$105

Shareholders might have noticed that LeMaitre Vascular, Inc. (NASDAQ:LMAT) filed its yearly result this time last week. The early response was not positive, with shares down 7.7% to US$91.85 in the past week. It was a credible result overall, with revenues of US$220m and statutory earnings per share of US$1.93 both in line with analyst estimates, showing that LeMaitre Vascular is executing in line with expectations. 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.

See our latest analysis for LeMaitre Vascular

Taking into account the latest results, the most recent consensus for LeMaitre Vascular from eleven analysts is for revenues of US$239.3m in 2025. If met, it would imply a solid 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 14% to US$2.24. In the lead-up to this report, the analysts had been modelling revenues of US$240.2m and earnings per share (EPS) of US$2.17 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.6% to US$105. 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 LeMaitre Vascular at US$120 per share, while the most bearish prices it at US$90.00. This is a very narrow spread of estimates, implying either that LeMaitre Vascular is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that LeMaitre Vascular's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this to the 239 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.8% per year. So it's pretty clear that, while LeMaitre Vascular's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LeMaitre Vascular's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for LeMaitre Vascular going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.