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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.