Akoya Biosciences, Inc. (NASDAQ:AKYA) Just Reported, And Analysts Assigned A US$5.42 Price Target

Akoya Biosciences, Inc. (NASDAQ:AKYA) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to US$2.09 in the week after its latest second-quarter results. Revenues came in at US$23m, in line with forecasts and the company reported a statutory loss of US$0.27 per share, roughly in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Akoya Biosciences

Taking into account the latest results, the most recent consensus for Akoya Biosciences from nine analysts is for revenues of US$98.9m in 2024. If met, it would imply a credible 6.1% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 13% from last year to US$1.06. Before this earnings announcement, the analysts had been modelling revenues of US$103.2m and losses of US$1.07 per share in 2024.

The average price target fell 12% to US$5.42, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses. 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 Akoya Biosciences, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$3.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Akoya Biosciences' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 24% 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) 6.7% per year. So it's pretty clear that, while Akoya Biosciences' 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. They also downgraded Akoya Biosciences' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Akoya Biosciences' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Akoya Biosciences going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Akoya Biosciences has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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.