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Analyst Forecasts For Mid Penn Bancorp, Inc. (NASDAQ:MPB) Are Surging Higher

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Shareholders in Mid Penn Bancorp, Inc. (NASDAQ:MPB) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Mid Penn Bancorp from its twin analysts is for revenues of US$111m in 2021 which, if met, would be a sizeable 21% increase on its sales over the past 12 months. Per-share earnings are expected to rise 3.9% to US$2.66. Previously, the analysts had been modelling revenues of US$95m and earnings per share (EPS) of US$2.02 in 2021. 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.

View our latest analysis for Mid Penn Bancorp

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Despite these upgrades, the analysts have not made any major changes to their price target of US$21.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Mid Penn Bancorp at US$23.00 per share, while the most bearish prices it at US$19.00. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mid Penn Bancorp's past performance and to peers in the same industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 21%, in line with its 22% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.1% per year. So it's pretty clear that Mid Penn Bancorp is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at Mid Penn Bancorp.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2022, which can be seen for free 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.

This article by Simply Wall St is general in nature. 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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