- B. Riley analyst Alex Rygiel raised the price target on Bowman Consulting Group Ltd BWMN to $22 (an upside of 27%) from $19 and reiterated a Buy rating on the shares post the Q3 beat.
- Rygiel expects more acquisitions this year and through 2022 given the company's "strong" pipeline and current discussions.
- The analyst says Bowman is positioned to be a solid beneficiary of the infrastructure bill, especially within its transportation, power and utilities, and emerging markets.
- Recently, Bowman reported Q3 results, with revenue of $39.72 million (+25% Y/Y) missing the consensus of $40.74 million; and EPS of $0.03 beating the consensus of $(0.03).
- Net service billing totaled $35.7 million (+41% Y/Y). Backlog was at $139 million, an increase of 13% from June 30, 2021.
- Adjusted EBITDA increased by 15% Y/Y to $4.23 million, and margin contracted by 277 bps to 12.4%.
- Bowman generated cash from operating activities year-to-date of $3.23 million, compared to $8.93 million.
- FY21 Outlook: Bowman increased Net Service Billing expectations to $130 million - $133 million (prior view $125 million - $130 million) and Adjusted EBITDA of ~$16.5 million (prior view $15 million - $15.6 million).
- Bowman introduced its FY22 outlook, with expected Net Service Billing of $150 million - $170 million, with Adjusted EBITDA of $20 million – $24 million.
- The company also seeks to continue making strategic and financially accretive acquisitions.
- Price Action: BWMN shares are trading higher by 0.7% at $17.25 on the last check Friday.
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