US$6.00 - That's What Analysts Think Neuronetics, Inc. (NASDAQ:STIM) Is Worth After These Results
Neuronetics, Inc. (NASDAQ:STIM) just released its quarterly report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$42m leading estimates by 3.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.05 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Neuronetics' three analysts is for revenues of US$161.8m in 2026. This reflects an okay 4.3% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 12% from last year to US$0.35. Before this latest report, the consensus had been expecting revenues of US$161.1m and US$0.47 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very promising decrease in losses per share in particular.
View our latest analysis for Neuronetics
The average price target rose 33% to US$6.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. 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 Neuronetics, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$5.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. It's pretty clear that there is an expectation that Neuronetics' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.8% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Compare this to the 232 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.6% per year. Factoring in the forecast slowdown in growth, it looks like Neuronetics is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Simply Wall St, we have a full range of analyst estimates for Neuronetics going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Neuronetics (1 can't be ignored!) that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.