Need To Know: Analysts Are Much More Bullish On PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Revenues

PROCEPT BioRobotics Corporation (NASDAQ:PRCT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that PROCEPT BioRobotics will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from PROCEPT BioRobotics' four analysts is for revenues of US$62m in 2022 which - if met - would reflect a sizeable 48% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$1.86 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$56m and losses of US$1.87 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

Check out our latest analysis for PROCEPT BioRobotics

Analysts increased their price target 12% to US$43.25, perhaps signalling that higher revenues are a strong leading indicator for PROCEPT BioRobotics's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic PROCEPT BioRobotics analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$36.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PROCEPT BioRobotics shareholders.

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. It's pretty clear that there is an expectation that PROCEPT BioRobotics' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 69% growth on an annualised basis. This is compared to a historical growth rate of 202% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% per year. So it's pretty clear that, while PROCEPT BioRobotics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around PROCEPT BioRobotics' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at PROCEPT BioRobotics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple PROCEPT BioRobotics analysts - going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.