Trump announces trade deal with EU following months of negotiations
On Wednesday, BofA Securities adjusted its outlook on Bowman Consulting Group Ltd. (NASDAQ: BWMN), reducing the price target to $30.50 from the previous $36.50 but maintaining a Buy rating on the stock. The company’s shares, currently trading at $18.80, have declined about 25% year-to-date, according to InvestingPro data. The revision follows Bowman’s fourth-quarter financial results, which revealed an adjusted EBITDA of $17 million, surpassing consensus expectations by 4%, despite net revenue falling short by the same margin at $98.6 million.
The firm’s adjusted EBITDA margin saw a significant year-over-year increase of 320 basis points, reaching 17.2%, marking the highest margin quarter for Bowman in 2024. This performance aligns with the company’s impressive gross profit margin of 51.5% over the last twelve months, as reported by InvestingPro. The company also actively engaged in share repurchases, buying back $34.4 million worth of shares throughout 2024 and an additional $4.1 million after the year’s end.
Bowman Consulting experienced robust bookings in the latter half of 2024, which supports BofA Securities’ positive stance on the company’s potential. BofA Securities expressed confidence in Bowman’s strategic positioning to foster growth through mergers and acquisitions and to benefit early from any local market growth inflection.
The analyst at BofA Securities highlighted the firm’s strong performance and strategic initiatives, stating, "Bowman reported a better-than-expected Q4: Adj. EBITDA of $17mn, was 4% above consensus expectations on net revenue ($98.6mn) that was 4% below. Adj. EBITDA margin expanded 320bps YoY to 17.2% and was the highest margin quarter of 2024. Bowman repurchased $34.4mn in shares over 2024 and repurchased an additional $4.1mn after year end. Bowman saw strong bookings in the second half of 2024, and we continue to view the firm as well positioned to drive growth via M&A and be an early beneficiary from any ’inflection’ in local growth. Reiterate Buy."
Investors and market watchers will likely monitor Bowman Consulting’s performance and strategic moves closely, especially in light of the revised price target and ongoing confidence from BofA Securities. According to InvestingPro analysis, the stock appears undervalued at current levels, with 11 additional exclusive ProTips available to subscribers, including detailed insights on growth prospects and market positioning. For comprehensive analysis, investors can access the full Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
In other recent news, Bowman Consulting Group Ltd. has been awarded a $1.5 million contract by the City of Wenatchee, Washington, to oversee the construction of bike and pedestrian bridges. This project is part of the Apple (NASDAQ:AAPL) Capital Loop’s South End Bike/Ped Access Bridges initiative and aims to improve safety and connectivity for non-motorized traffic. Additionally, Bowman secured a significant four-year contract with the University of New Mexico, capped at $7.5 million, to provide on-call engineering design services across the university’s campuses. This contract highlights Bowman’s role in supporting UNM’s campus expansion and infrastructure planning.
Furthermore, Bowman has been selected to perform a comprehensive aerial mapping project for the State of Oklahoma, marking the first initiative of its kind in nearly 30 years. The project will involve capturing high-resolution geospatial data to support various state operations. Gary Bowman, the company’s chairman and CEO, emphasized the strategic importance of these contracts, underscoring the firm’s commitment to leveraging advanced technologies and expanding its service offerings. These recent developments reflect Bowman’s growing presence in infrastructure and engineering services across different sectors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.