Yahoo Finance Talkspace, Inc. (NASDAQ:TALK) Just Reported And Analysts Have Been Lifting Their Price Targets
It's been a mediocre week for Talkspace, Inc. (NASDAQ:TALK) shareholders, with the stock dropping 15% to US$2.66 in the week since its latest first-quarter results. Talkspace reported revenues of US$45m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.01 per share, which were slightly larger than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Talkspace after the latest results.
Check out our latest analysis for Talkspace
Taking into account the latest results, the consensus forecast from Talkspace's two analysts is for revenues of US$188.6m in 2024. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 86% to US$0.01. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$184.6m and losses of US$0.015 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable decrease in loss per share in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for Talkspace 6.7% to US$4.00on the back of these upgrades.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Talkspace's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 15% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Talkspace is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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 analyst estimates for Talkspace going out as far as 2026, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Talkspace .
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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.
