Yahoo Finance Need To Know: Analysts Are Much More Bullish On AssetMark Financial Holdings, Inc. (NYSE:AMK) Revenues
Shareholders in AssetMark Financial Holdings, Inc. (NYSE:AMK) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that AssetMark Financial Holdings will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 5.5% over the past week, closing at US$24.50. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
After the upgrade, the consensus from AssetMark Financial Holdings' seven analysts is for revenues of US$378m in 2021, which would reflect a chunky 12% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$326m of revenue in 2021. It looks like there's been a clear increase in optimism around AssetMark Financial Holdings, given the solid increase in revenue forecasts.
View our latest analysis for AssetMark Financial Holdings
We'd point out that there was no major changes to their price target of US$28.08, suggesting the latest estimates were not enough to shift their view on the value of the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values AssetMark Financial Holdings at US$32.00 per share, while the most bearish prices it at US$23.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 12%, a significant reduction from annual growth of 14% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - AssetMark Financial Holdings is expected to lag the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for AssetMark Financial Holdings next year. They also expect company revenue to perform worse than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at AssetMark Financial Holdings.
Thirsting for more data? At least one of AssetMark Financial Holdings' seven analysts has provided estimates out to 2022, which can be seen for 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.
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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