Gauzy Ltd. (NASDAQ:GAUZ) Just Reported, And Analysts Assigned A US$12.00 Price Target

As you might know, Gauzy Ltd. (NASDAQ:GAUZ) last week released its latest first-quarter, and things did not turn out so great for shareholders. It definitely looks like a negative result overall with revenues falling 17% short of analyst estimates at US$22m. Statutory losses were US$0.58 per share, 57% bigger than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Gauzy's twin analysts is for revenues of US$130.4m in 2025. This reflects a sizeable 29% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 60% to US$1.09. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$135.2m and losses of US$0.97 per share in 2025. While this year's revenue estimates dropped there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Gauzy

The average price target fell 11% to US$12.00, implicitly signalling that lower earnings per share are a leading indicator for Gauzy's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gauzy's past performance and to peers in the same industry. It's clear from the latest estimates that Gauzy's rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 19% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gauzy 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. They also downgraded Gauzy's 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 Gauzy's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Gauzy. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Gauzy you should be aware of, and 1 of them can't be ignored.

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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.