Analysts' Revenue Estimates For The Bancorp, Inc. (NASDAQ:TBBK) Are Surging Higher
Celebrations may be in order for The Bancorp, Inc. (NASDAQ:TBBK) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Bancorp will make substantially more sales than they'd previously expected.
After the upgrade, the consensus from Bancorp's three analysts is for revenues of US$396m in 2023, which would reflect a perceptible 4.9% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$357m of revenue in 2023. It looks like there's been a clear increase in optimism around Bancorp, given the nice increase in revenue forecasts.
See our latest analysis for Bancorp
We'd point out that there was no major changes to their price target of US$42.00, suggesting the latest estimates were not enough to shift their view on the value of the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Bancorp, with the most bullish analyst valuing it at US$46.00 and the most bearish at US$38.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
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. We would highlight that sales are expected to reverse, with a forecast 9.6% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 9.5% 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 4.4% per year. It's pretty clear that Bancorp's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Bancorp.
Want more information? We have analyst estimates for Bancorp going out to 2024, and you can see them 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.
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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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