Analysts Are Updating Their Precigen, Inc. (NASDAQ:PGEN) Estimates After Its Third-Quarter Results

One of the biggest stories of last week was how Precigen, Inc. (NASDAQ:PGEN) shares plunged 36% in the week since its latest third-quarter results, closing yesterday at US$4.47. It was a workmanlike result, with revenues of US$74m coming in 3.6% ahead of expectations, and statutory earnings per share of US$0.08, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Precigen from four analysts is for revenues of US$437.1m in 2027. If met, it would imply a major 178% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 814% to US$0.62. Before this earnings report, the analysts had been forecasting revenues of US$437.1m and earnings per share (EPS) of US$0.62 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Precigen

There were no changes to revenue or earnings estimates or the price target of US$13.65, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Precigen at US$17.95 per share, while the most bearish prices it at US$11.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 clear from the latest estimates that Precigen's rate of growth is expected to accelerate meaningfully, with the forecast 127% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 35% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Precigen to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at US$13.65, with the latest estimates not enough to have an impact on their price targets.

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 Precigen going out to 2028, and you can see them free on our platform here.

Even so, be aware that Precigen is showing 5 warning signs in our investment analysis , and 2 of those are potentially serious...

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