Industry Analysts Just Upgraded Their FinWise Bancorp (NASDAQ:FINW) Revenue Forecasts By 10%
Celebrations may be in order for FinWise Bancorp (NASDAQ:FINW) 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 FinWise Bancorp will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 6.3% over the past week, closing at US$9.51. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
After this upgrade, FinWise Bancorp's dual analysts are now forecasting revenues of US$72m in 2023. This would be a notable 10% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$65m of revenue in 2023. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
View our latest analysis for FinWise Bancorp
There was no particular change to the consensus price target of US$10.50, with FinWise Bancorp's latest outlook seemingly not enough to result in a change of valuation. 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. Currently, the most bullish analyst values FinWise Bancorp at US$11.00 per share, while the most bearish prices it at US$10.00. 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. For example, we noticed that FinWise Bancorp's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 22% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 19% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.4% per year. So it looks like FinWise Bancorp is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at FinWise Bancorp.
Unsatisfied? At least one of FinWise Bancorp's dual analysts has provided estimates out to 2024, which can be seen for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
