US$18.00 - That's What Analysts Think P3 Health Partners Inc. (NASDAQ:PIII) Is Worth After These Results
P3 Health Partners Inc. (NASDAQ:PIII) just released its latest second-quarter results and things are looking bullish. Results overall were solid, with revenues arriving 2.3% better than analyst forecasts at US$386m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.63 per share, were 2.3% smaller than the analysts expected. 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.
Following the latest results, P3 Health Partners' twin analysts are now forecasting revenues of US$1.55b in 2026. This would be a credible 3.3% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 71% to US$9.31. Before this earnings announcement, the analysts had been modelling revenues of US$1.52b and losses of US$8.45 per share in 2026. While this year's revenue estimates held steady, there was also a considerable 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 P3 Health Partners
Despite expectations of heavier losses next year,the analysts have lifted their price target 29% to US$18.00, perhaps implying these losses are not expected to be recurring over the long term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that P3 Health Partners' revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% per year. Even after the forecast slowdown in growth, it seems obvious that P3 Health Partners is also 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 P3 Health Partners. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. 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 4 warning signs for P3 Health Partners you should be aware of, and 3 of them are significant.
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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.