PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Just Reported, And Analysts Assigned A US$65.75 Price Target

A week ago, PROCEPT BioRobotics Corporation (NASDAQ:PRCT) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results overall were credible, with revenues arriving 3.9% better than analyst forecasts at US$79m. Higher revenues also resulted in lower statutory losses, which were US$0.35 per share, some 3.9% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 consensus forecast from PROCEPT BioRobotics' twelve analysts is for revenues of US$325.3m in 2025. This reflects a meaningful 18% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.49. Before this earnings announcement, the analysts had been modelling revenues of US$324.5m and losses of US$1.50 per share in 2025.

View our latest analysis for PROCEPT BioRobotics

As a result, it's unexpected to see that the consensus price target fell 13% to US$65.75, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. 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. Currently, the most bullish analyst values PROCEPT BioRobotics at US$85.00 per share, while the most bearish prices it at US$51.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 40% growth on an annualised basis. This is compared to a historical growth rate of 51% over the past three 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. 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 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for PROCEPT BioRobotics going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for PROCEPT BioRobotics 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.