Earnings Update: Here's Why Analysts Just Lifted Their PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Price Target To US$102

A week ago, PROCEPT BioRobotics Corporation (NASDAQ:PRCT) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Revenues beat expectations coming in atUS$58m, ahead of estimates by 9.7%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.40 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 PROCEPT BioRobotics

Taking into account the latest results, the most recent consensus for PROCEPT BioRobotics from six analysts is for revenues of US$312.7m in 2025. If met, it would imply a substantial 56% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 27% to US$1.34. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$304.7m and losses of US$1.45 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.

It will come as no surprise to learn thatthe analysts have increased their price target for PROCEPT BioRobotics 14% to US$102on the back of these upgrades. 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. There are some variant perceptions on PROCEPT BioRobotics, with the most bullish analyst valuing it at US$105 and the most bearish at US$99.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that PROCEPT BioRobotics' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 43% growth on an annualised basis. This is compared to a historical growth rate of 56% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.3% per year. Even after the forecast slowdown in growth, it seems obvious that PROCEPT BioRobotics is also expected 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 estimates - from multiple PROCEPT BioRobotics analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for PROCEPT BioRobotics 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.