New Forecasts: Here's What Analysts Think The Future Holds For MainStreet Bancshares, Inc. (NASDAQ:MNSB)

MainStreet Bancshares, Inc. (NASDAQ:MNSB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, MainStreet Bancshares' dual analysts are now forecasting revenues of US$64m in 2022. This would be a modest 4.7% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 5.8% to US$2.56 in the same period. Previously, the analysts had been modelling revenues of US$55m and earnings per share (EPS) of US$2.39 in 2022. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for MainStreet Bancshares

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that MainStreet Bancshares' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 25% 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) 5.0% annually. Factoring in the forecast slowdown in growth, it looks like MainStreet Bancshares is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue forecasts, although the latest estimates suggest that MainStreet Bancshares will grow in line with the overall market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MainStreet Bancshares.

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

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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.