Analysts Just Made A Captivating Upgrade To Their Amalgamated Financial Corp. (NASDAQ:AMAL) Forecasts

Celebrations may be in order for Amalgamated Financial Corp. (NASDAQ:AMAL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After this upgrade, Amalgamated Financial's three analysts are now forecasting revenues of US$251m in 2022. This would be a substantial 21% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 36% to US$2.41. Prior to this update, the analysts had been forecasting revenues of US$225m and earnings per share (EPS) of US$1.89 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Amalgamated Financial

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. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Amalgamated Financial, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$19.50 per share. This is a very narrow spread of estimates, implying either that Amalgamated Financial is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Amalgamated Financial's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 3.4% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Amalgamated Financial to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. 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 this year's earnings expectations, it might be time to take another look at Amalgamated Financial.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Amalgamated Financial analysts - going out to 2023, 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.