Arteris, Inc. (NASDAQ:AIP) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders of Arteris, Inc. (NASDAQ:AIP) will be pleased this week, given that the stock price is up 12% to US$14.89 following its latest quarterly results. The business exceeded expectations with revenue of US$17m coming in 2.4% ahead of forecasts. Statutory losses were US$0.21 a share, in line with what the analysts predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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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Taking into account the latest results, the consensus forecast from Arteris' four analysts is for revenues of US$82.9m in 2026. This reflects a substantial 26% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 12% from last year to US$0.69. Before this latest report, the consensus had been expecting revenues of US$80.0m and US$0.52 per share in losses. So it's pretty clear the analysts have mixed opinions on Arteris even after this update; although they upped their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

Check out our latest analysis for Arteris

It will come as a surprise to learn that the consensus price target rose 12% to US$16.75, with the analysts clearly more interested in growing revenue, even as losses intensify. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Arteris at US$20.00 per share, while the most bearish prices it at US$15.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Arteris is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Arteris' growth to accelerate, with the forecast 20% annualised growth to the end of 2026 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Arteris is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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. We have estimates - from multiple Arteris analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Arteris (including 1 which is a bit concerning) .

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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.