US$77.00: That's What Analysts Think PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Is Worth After Its Latest Results

PROCEPT BioRobotics Corporation (NASDAQ:PRCT) just released its latest first-quarter results and things are looking bullish. PROCEPT BioRobotics beat expectations with revenues of US$69m arriving 5.7% ahead of forecasts. The company also reported a statutory loss of US$0.45, 8.2% smaller than was 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, PROCEPT BioRobotics' ten analysts are now forecasting revenues of US$324.3m in 2025. This would be a huge 30% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 8.5% to US$1.51 per share. Before this earnings announcement, the analysts had been modelling revenues of US$321.7m and losses of US$1.49 per share in 2025.

View our latest analysis for PROCEPT BioRobotics

The analysts trimmed their valuations, with the average price target falling 15% to US$77.00, with the ongoing losses seemingly weighing on sentiment, despite no real changes 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. Currently, the most bullish analyst values PROCEPT BioRobotics at US$91.00 per share, while the most bearish prices it at US$60.00. 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. We would highlight that PROCEPT BioRobotics' revenue growth is expected to slow, with the forecast 42% annualised growth rate until the end of 2025 being well below the historical 54% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% annually. 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 obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still 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.

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. 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..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with PROCEPT BioRobotics , and understanding them should be part of your investment process.

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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.