DA Davidson raises Bowman Consulting stock price target to $43 on margin execution

Published 08/08/2025, 11:50
DA Davidson raises Bowman Consulting stock price target to $43 on margin execution

Investing.com - DA Davidson raised its price target on Bowman Consulting Group Ltd. (NASDAQ:BWMN) to $43.00 from $32.00 on Friday, while maintaining a Buy rating on the stock. The new target aligns with market sentiment, as InvestingPro data shows the stock has already delivered an impressive 50% return over the past six months.

The research firm cited solid margin execution and high-single-digit net revenue organic growth as key factors behind the decision. This assessment is supported by InvestingPro data showing impressive gross profit margins of 52.7% and robust revenue growth of 19.48% over the last twelve months. Improved backlog figures also reflected strength in underlying business demand, according to the firm’s analysis.

The new price target represents approximately 10 times the firm’s 2025 EBITDA estimates and 9 times its 2026 EBITDA estimates for Bowman Consulting. These higher multiples consider the company’s improved margins and fixed cost leverage, which appear sustainable.

DA Davidson also pointed to healthy organic growth rates and booking trends as supporting factors for the increased valuation. The firm noted an industry valuation recovery since earlier this year, partly reflecting sustained infrastructure sector growth prospects.

Recent peer M&A activity was also referenced as a benchmark, specifically mentioning the NV5 transaction by Acuren (TIC) for 10 times 2025 EBITDA estimates.

In other recent news, Bowman Consulting Group Ltd reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share of $0.55, which significantly exceeded analyst forecasts of $0.23. This marked a substantial earnings surprise of 139.13%. Additionally, Bowman Consulting’s revenue reached $122.1 million, surpassing the anticipated $106.33 million by 14.83%. These figures highlight a strong performance for the company during this period. The recent developments indicate a positive trajectory for Bowman Consulting, as reflected in their financial outcomes. Investors and analysts will likely take note of these results in evaluating the company’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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