Analysts Have Been Trimming Their SNDL Inc. (NASDAQ:SNDL) Price Target After Its Latest Report
SNDL Inc. (NASDAQ:SNDL) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were in line with expectations, at CA$236m, while statutory losses ballooned to CA$0.03 per share. 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.
Taking into account the latest results, the twin analysts covering SNDL provided consensus estimates of CA$909.3m revenue in 2026, which would reflect a noticeable 2.1% decline over the past 12 months. Losses are forecast to narrow 2.5% to CA$0.085 per share. Before this latest report, the consensus had been expecting revenues of CA$922.0m and CA$0.02 per share in losses. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
View our latest analysis for SNDL
The consensus price target fell 15% to US$3.51per share, with the analysts clearly concerned by ballooning losses.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.1% by the end of 2026. This indicates a significant reduction from annual growth of 28% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.2% per year. It's pretty clear that SNDL's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SNDL's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on SNDL. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
Even so, be aware that SNDL is showing 1 warning sign in our investment analysis , you should know about...
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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.