Yahoo Finance US$16.50 - That's What Analysts Think Pulmonx Corporation (NASDAQ:LUNG) Is Worth After These Results
One of the biggest stories of last week was how Pulmonx Corporation (NASDAQ:LUNG) shares plunged 25% in the week since its latest yearly results, closing yesterday at US$10.81. Revenue hit US$69m in line with forecasts, although the company reported a statutory loss per share of US$1.60 that was somewhat smaller than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pulmonx after the latest results.
Check out our latest analysis for Pulmonx
Following the latest results, Pulmonx's six analysts are now forecasting revenues of US$82.4m in 2024. This would be a notable 20% improvement in revenue compared to the last 12 months. Losses are expected to increase substantially, hitting US$1.86 per share. Before this latest report, the consensus had been expecting revenues of US$78.9m and US$1.65 per share in losses. So it's pretty clear the analysts have mixed opinions on Pulmonx even after this update; although they upped their revenue numbers, it came at the cost of a notable increase in per-share losses.
The average price target rose 7.6% to US$16.50, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. 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. The most optimistic Pulmonx analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$14.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.8% annually. So although Pulmonx is expected to maintain its revenue growth rate, it's definitely expected 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 Pulmonx. 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 Pulmonx analysts - going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Pulmonx .
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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.