Earnings Release: Here's Why Analysts Cut Their Blade Air Mobility, Inc. (NASDAQ:BLDE) Price Target To US$7.20

Blade Air Mobility, Inc. (NASDAQ:BLDE) investors will be delighted, with the company turning in some strong numbers with its latest results. The results overall were pretty good, with revenues of US$54m exceeding expectations and statutory losses coming in at justUS$0.04 per share, some 65% below what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Blade Air Mobility. Read for free now.

Taking into account the latest results, the most recent consensus for Blade Air Mobility from five analysts is for revenues of US$257.9m in 2025. If met, it would imply a credible 2.6% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 66% to US$0.11. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$256.3m and losses of US$0.16 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.

Check out our latest analysis for Blade Air Mobility

The consensus price target fell 5.6% to US$7.20despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. 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. There are some variant perceptions on Blade Air Mobility, with the most bullish analyst valuing it at US$13.50 and the most bearish at US$5.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the 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. We would highlight that Blade Air Mobility's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 30% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Blade Air Mobility is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Blade Air Mobility's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Blade Air Mobility. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Blade Air Mobility going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Blade Air Mobility 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.