In This Article:
It's been a pretty great week for Stock Yards Bancorp, Inc. (NASDAQ:SYBT) shareholders, with its shares surging 11% to US$74.67 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of US$94m were in line with what the analysts predicted, Stock Yards Bancorp surprised by delivering a statutory profit of US$1.13 per share, a notable 14% above expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Stock Yards Bancorp from six analysts is for revenues of US$384.2m in 2025. If met, it would imply a solid 8.7% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.2% to US$4.35. In the lead-up to this report, the analysts had been modelling revenues of US$383.3m and earnings per share (EPS) of US$4.19 in 2025. So the consensus seems to have become somewhat more optimistic on Stock Yards Bancorp's earnings potential following these results.
View our latest analysis for Stock Yards Bancorp
The consensus price target was unchanged at US$78.80, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Stock Yards Bancorp analyst has a price target of US$81.00 per share, while the most pessimistic values it at US$76.00. This is a very narrow spread of estimates, implying either that Stock Yards Bancorp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Stock Yards Bancorp's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.1% per year. Even after the forecast slowdown in growth, it seems obvious that Stock Yards Bancorp is also expected to grow faster than the wider industry.