Need To Know: Analysts Are Much More Bullish On FinWise Bancorp (NASDAQ:FINW) Revenues

Shareholders in FinWise Bancorp (NASDAQ:FINW) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The stock price has risen 6.3% to US$9.51 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

After the upgrade, the twin analysts covering FinWise Bancorp are now predicting revenues of US$72m in 2023. If met, this would reflect a solid 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 nice increase in revenue forecasts.

Check out 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. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on FinWise Bancorp, with the most bullish analyst valuing it at US$11.00 and the most bearish at US$10.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting FinWise Bancorp is an easy business to forecast or the underlying assumptions are obvious.

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. One thing stands out from these estimates, which is that FinWise Bancorp is forecast to grow faster in the future than it has in the past, with revenues expected to display 22% annualised growth until the end of 2023. If achieved, this would be a much better result than the 19% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.4% annually. Not only are FinWise Bancorp's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for FinWise Bancorp this year. The analysts also expect revenues to grow faster 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 FinWise Bancorp.

Looking for more information? We have analyst estimates for FinWise 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.

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.