Texas Capital Securities initiates coverage on Bowman stock with Buy rating

Investing.com - Texas Capital Securities initiated coverage on Bowman Consulting Group Ltd. (NASDAQ:BWMN) with a Buy rating and a price target of $59.00 on Thursday. The company, currently trading at $39.82 with a market capitalization of $685 million, has shown impressive momentum with an 85% return over the past six months. According to InvestingPro data, two analysts have recently revised their earnings estimates upward for the upcoming period.

The research firm views Bowman as a national, small-cap engineering and consulting firm that is benefiting from infrastructure-related megatrends along with inorganic growth and margin expansion, which is expected to drive approximately 20% annual earnings growth over the next several years. The company maintains impressive gross profit margins of 52.7% and has achieved revenue growth of 19.5% over the last twelve months. InvestingPro analysis reveals 15+ additional key metrics and insights available for subscribers.

Since its IPO in 2021, Bowman has acquired more than 35 companies, which has added new areas of expertise, expanded capabilities across existing services, grown its national footprint, and created diversification to better position the company for future growth and profitability.

Texas Capital Securities believes Bowman will continue to be a consolidator in the industry and should maintain financial flexibility through its strong balance sheet and solid cash flow generation.

The firm’s $59 price target for Bowman Consulting Group represents potential upside from the stock’s current trading level.

In other recent news, Bowman Consulting Group Ltd. reported strong financial results for the second quarter of 2025, surpassing analyst expectations with an earnings per share of $0.55 compared to the forecasted $0.23. The company’s revenue reached $122.1 million, exceeding the anticipated $106.33 million. In addition to these impressive earnings results, Bowman secured a $4.5 million contract with the DuPage Water Commission to provide construction engineering services for the WaterLink Pipeline Project in Illinois. This agreement involves engineering services for a six-mile section of a new water transmission main. Furthermore, Bowman was awarded a contract by the Illinois Department of Transportation to provide preliminary engineering services for improvements to US 30 in Morrison, Illinois. These contracts reflect Bowman’s growing involvement in significant infrastructure projects. In another development, DA Davidson raised its price target for Bowman Consulting to $43, maintaining a Buy rating. The firm’s decision was based on Bowman’s solid margin execution and strong revenue growth.

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