Cellebrite DI Ltd. (NASDAQ:CLBT) Just Reported And Analysts Have Been Lifting Their Price Targets
The investors in Cellebrite DI Ltd.'s (NASDAQ:CLBT) will be rubbing their hands together with glee today, after the share price leapt 21% to US$11.39 in the week following its annual results. The results don't look great, especially considering that statutory losses grew 43% toUS$0.43 per share. Revenues of US$325m did beat expectations by 2.3%, but it looks like a bit of a cold comfort. 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.
See our latest analysis for Cellebrite DI
Taking into account the latest results, the consensus forecast from Cellebrite DI's seven analysts is for revenues of US$376.8m in 2024. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Cellebrite DI forecast to report a statutory profit of US$0.16 per share. Before this earnings report, the analysts had been forecasting revenues of US$371.7m and earnings per share (EPS) of US$0.15 in 2024. So the consensus seems to have become somewhat more optimistic on Cellebrite DI's earnings potential following these results.
The consensus price target rose 30% to US$13.17, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Cellebrite DI at US$15.00 per share, while the most bearish prices it at US$12.00. This is a very narrow spread of estimates, implying either that Cellebrite DI is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cellebrite DI's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 15% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that Cellebrite DI is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cellebrite DI's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cellebrite DI going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Cellebrite DI you should be aware of.
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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.
