News Flash: Analysts Just Made A Sizeable Upgrade To Their Triumph Bancorp, Inc. (NASDAQ:TBK) Forecasts

Celebrations may be in order for Triumph Bancorp, Inc. (NASDAQ:TBK) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After the upgrade, the seven analysts covering Triumph Bancorp are now predicting revenues of US$412m in 2021. If met, this would reflect a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 4.5% to US$4.26. Before this latest update, the analysts had been forecasting revenues of US$373m and earnings per share (EPS) of US$3.82 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Triumph Bancorp

With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to US$104 per share. 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 Triumph Bancorp, with the most bullish analyst valuing it at US$116 and the most bearish at US$90.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

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. We can infer from the latest estimates that forecasts expect a continuation of Triumph Bancorp'shistorical trends, as the 19% annualised revenue growth to the end of 2021 is roughly in line with the 22% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.8% per year. So although Triumph Bancorp is expected to maintain its revenue growth rate, it's definitely expected 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Triumph Bancorp.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Triumph Bancorp 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. 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.
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