Yahoo Finance Brokers Are Upgrading Their Views On Bowman Consulting Group Ltd. (NASDAQ:BWMN) With These New Forecasts
Shareholders in Bowman Consulting Group Ltd. (NASDAQ:BWMN) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Bowman Consulting Group has also found favour with investors, with the stock up a noteworthy 19% to US$18.25 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the upgrade, the latest consensus from Bowman Consulting Group's two analysts is for revenues of US$310m in 2023, which would reflect a major 36% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 214% to US$0.77. Previously, the analysts had been modelling revenues of US$281m and earnings per share (EPS) of US$0.62 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Bowman Consulting Group
It will come as no surprise to learn that the analysts have increased their price target for Bowman Consulting Group 13% to US$30.00 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Bowman Consulting Group, with the most bullish analyst valuing it at US$32.00 and the most bearish at US$28.00 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Bowman Consulting Group'shistorical trends, as the 28% annualised revenue growth to the end of 2023 is roughly in line with the 26% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.9% per year. So although Bowman Consulting Group 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 from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Bowman Consulting Group could be worth investigating further.
Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Bowman Consulting Group that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
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