Stock Analysis

Industry Analysts Just Upgraded Their Limestone Bancorp, Inc. (NASDAQ:LMST) Revenue Forecasts By 11%

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Limestone Bancorp, Inc. (NASDAQ:LMST) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Limestone Bancorp's dual analysts is for revenues of US$46m in 2022, which would reflect a considerable 10% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$42m in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

View our latest analysis for Limestone Bancorp

NasdaqCM:LMST Earnings and Revenue Growth January 23rd 2022

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 10% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 6.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Limestone Bancorp is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth 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 Limestone Bancorp.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Limestone Bancorp that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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.

What are the risks and opportunities for Limestone Bancorp?

Limestone Bancorp, Inc. operates as the bank holding company for Limestone Bank, Inc.

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  • Trading at 30.2% below our estimate of its fair value

  • Earnings grew by 24% over the past year


  • Earnings are forecast to decline by an average of 1.9% per year for the next 3 years

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