Seer, Inc. (NASDAQ:SEER) Just Reported, And Analysts Assigned A US$7.00 Price Target

Shareholders of Seer, Inc. (NASDAQ:SEER) will be pleased this week, given that the stock price is up 18% to US$1.82 following its latest yearly results. The results look positive overall; while revenues of US$17m were in line with analyst predictions, statutory losses were 7.1% smaller than expected, with Seer losing US$1.35 per share. 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.

Check out our latest analysis for Seer

Taking into account the latest results, the current consensus from Seer's three analysts is for revenues of US$19.3m in 2024. This would reflect a decent 16% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.28. Before this latest report, the consensus had been expecting revenues of US$19.7m and US$1.37 per share in losses. 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 losses per share, even though the revenue numbers were unchanged.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 6.7% to US$7.00. It looks likethe analysts have become less optimistic about the overall 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 Seer's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 57% 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) 6.1% per year. So it's pretty clear that, while Seer's 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Seer going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Seer 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.