Alpha Teknova, Inc. (NASDAQ:TKNO) Just Reported And Analysts Have Been Lifting Their Price Targets

Alpha Teknova, Inc. (NASDAQ:TKNO) shareholders are probably feeling a little disappointed, since its shares fell 9.3% to US$5.97 in the week after its latest annual results. Revenue hit US$38m in line with forecasts, although the company reported a statutory loss per share of US$0.57 that was somewhat smaller than the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alpha Teknova after the latest results.

Check out our latest analysis for Alpha Teknova

After the latest results, the six analysts covering Alpha Teknova are now predicting revenues of US$40.7m in 2025. If met, this would reflect a satisfactory 7.9% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 20% from last year to US$0.40. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$41.8m and losses of US$0.39 per share in 2025. So it's pretty clear consensus is more negative on Alpha Teknova after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a modest increase to per-share loss expectations.

The analysts lifted their price target 19% to US$10.67, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Alpha Teknova, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$10.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alpha Teknova's past performance and to peers in the same industry. The analysts are definitely expecting Alpha Teknova's growth to accelerate, with the forecast 7.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Alpha Teknova to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Alpha Teknova. They also downgraded Alpha Teknova's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Alpha Teknova. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Alpha Teknova analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Alpha Teknova (1 can't be ignored!) that you need to take into consideration.

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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.