Analyst Estimates: Here's What Brokers Think Of Davide Campari-Milano N.V. (BIT:CPR) After Its Third-Quarter Report

Investors in Davide Campari-Milano N.V. (BIT:CPR) had a good week, as its shares rose 4.1% to close at €6.03 following the release of its quarterly results. It was a credible result overall, with revenues of €753m and statutory earnings per share of €0.17 both in line with analyst estimates, showing that Davide Campari-Milano is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Davide Campari-Milano's 19 analysts are now forecasting revenues of €3.15b in 2026. This would be a satisfactory 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 124% to €0.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.17b and earnings per share (EPS) of €0.32 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Davide Campari-Milano

The consensus price target was unchanged at €6.73, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Davide Campari-Milano at €11.00 per share, while the most bearish prices it at €4.20. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Davide Campari-Milano's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Davide Campari-Milano is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Davide Campari-Milano's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Davide Campari-Milano's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €6.73, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Davide Campari-Milano going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Davide Campari-Milano you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.