Today is shaping up negative for LENZ Therapeutics, Inc. (NASDAQ:LENZ) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the downgrade, the latest consensus from LENZ Therapeutics' seven analysts is for revenues of US$28m in 2026, which would reflect a substantial 48% improvement in sales compared to the last 12 months. Losses are supposed to balloon 43% to US$3.75 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$50m and losses of US$2.93 per share in 2026. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for LENZ Therapeutics
The consensus price target fell 20% to US$41.14, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LENZ Therapeutics' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of LENZ Therapeutics'historical trends, as the 48% annualised revenue growth to the end of 2026 is roughly in line with the 50% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So although LENZ Therapeutics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of LENZ Therapeutics.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for LENZ Therapeutics going out to 2028, and you can see them free on our platform here.
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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.