ThinkEquity thinks Harbor Custom Development Inc will continue to build on its 2021 successes in 2022.
“Harbor remains focused on strengthening its current market position and has a strong foundation to accelerate growth and market reach during 2022 and beyond,” analysts said in a note.
ThinkEquity came to that prediction after the real estate company, which is involved in all aspects of the land development cycle, revealed recently top-line revenue growth of over 43% year-over-year in its first full year as a public company.
READ: Harbor Custom Development reports strong top-line revenue growth in its first year as a public company
Harbor generated net sales of $72.4 million in the year ended December 31, 2021, compared to $50.4 million in 2020. It also saw net income of $8.9 million, or $0.43 per share, compared to a net loss of $3.8 million, or $0.84 loss per share, in the year prior.
And as a top-off, Harbor’s real estate assets at the end of 2021 were valued at $122.1 million, compared to $20.4 million in 2020.
Looking ahead, the company is setting its 2022 revenue guidance at $160 million, with adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization of approximately $20 million, driven by continued strength in the residential and multi-family housing markets.
“Harbor benefited from strong pricing and demand conditions during 2021,” analysts said.
“Harbor has navigated industry challenges that include supply chain disruption, labor shortages, and inflationary pressures. With low inventory, Harbor expects to benefit from continued strong pricing throughout 2022. The business plan of serving multiple segments of the home buying market within a 20- to 60-minute commute of some of the nation’s fastest-growing regions continues to provide Harbor with a consistent revenue stream.”
ThinkEquity has a ‘Buy’ rating on Harbor’s stock with an $8 price target. Shares recently traded at around $2.19 each on the Nasdaq.
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