TowneBank (NASDAQ:TOWN) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, TowneBank (NASDAQ:TOWN) recently reported its yearly numbers. TowneBank reported US$694m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.15 beat expectations, being 3.1% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TowneBank after the latest results.

See our latest analysis for TowneBank

Taking into account the latest results, the consensus forecast from TowneBank's four analysts is for revenues of US$788.1m in 2025. This reflects a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to US$2.50. In the lead-up to this report, the analysts had been modelling revenues of US$784.9m and earnings per share (EPS) of US$2.53 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.3% to US$40.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of TowneBank's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on TowneBank, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$36.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting TowneBank's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TowneBank to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on TowneBank. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TowneBank analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for TowneBank that you should be aware of.

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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.