What Does The Future Hold For The Bancorp, Inc. (NASDAQ:TBBK)? These Analysts Have Been Cutting Their Estimates

Today is shaping up negative for The Bancorp, Inc. (NASDAQ:TBBK) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, Bancorp's three analysts currently expect revenues in 2025 to be US$466m, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing US$523m of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on Bancorp, given the measurable cut to revenue estimates.

Check out our latest analysis for Bancorp

We'd point out that there was no major changes to their price target of US$60.67, suggesting the latest estimates were not enough to shift their view on the value of the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.9% by the end of 2025. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.2% annually for the foreseeable future. It's pretty clear that Bancorp's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Bancorp going forwards.

Want more information? We have estimates for Bancorp from its three analysts out until 2026, 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.