B. Riley Remains Bullish On Bowman Consulting, Bumps Up Price Target

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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