Analysts Maintain Bullish Outlook for Carriage Services Despite Forecast Tweaks

Shares of Carriage Services present a complex narrative for investors. While the company recently delivered quarterly results that surpassed market expectations, equity researchers have made minor downward adjustments to their long-term earnings forecasts. This juxtaposition has not dampened the overall positive sentiment on Wall Street, with the stock continuing to trade significantly below consensus price targets.

The foundation for the current analyst commentary was laid by the firm's third-quarter report, released on November 5. Carriage Services posted earnings per share (EPS) of $0.75, exceeding the consensus estimate of $0.72. Revenue also outperformed, coming in at $102.74 million. Following these results, management provided more precise full-year guidance for 2025, now anticipating EPS in the range of $3.25 to $3.30. At recent trading levels, this implies a forward price-to-earnings (P/E) ratio of approximately 13.5.

Analyst Adjustments and Unwavering Confidence

In early December, Barrington Research updated its financial model on the company. The firm's analysts modestly reduced their EPS estimate for the 2026 fiscal year from $3.57 to $3.52. Despite this slight revision, the research house reaffirmed its constructive view. It maintained an "Outperform" rating and a $60.00 price target. With shares trading around $42, this target suggests substantial upside potential remains in the equity.

Should investors sell immediately? Or is it worth buying Carriage Services?

Broad Wall Street Consensus Points to Appreciation

The optimistic stance from Barrington aligns with the broader view among market strategists. The consensus rating for Carriage Services stock is "Moderate Buy," supported by five "Buy" recommendations and one "Hold." The average price target across all covering analysts stands at $59.00, which represents a potential gain of roughly 41% from the recent share price of $41.89. The most bullish forecast comes from B. Riley, with a target of $65.00, while the most conservative sits at $51.00.

Key Data Points:
* Current Share Price: $41.89
* Average Price Target: $59.00 (~41% upside potential)
* 2025 P/E (based on guidance): ~13.5
* Dividend Yield: ~1.07%

The company distributes a quarterly cash dividend of $0.1125 per share, equating to an annual payout of $0.45. Over the past 52 weeks, the stock has traded between $35.51 and $49.41. The cluster of analyst targets indicates a belief that the shares could significantly break out of this range if corporate performance continues to meet or exceed expectations.