This Analyst Just Wrote A Brand New Outlook For Zinzino AB (publ)'s (STO:ZZ B) Business

Celebrations may be in order for Zinzino AB (publ) (STO:ZZ B) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Zinzino's solo analyst is now forecasting revenues of kr3.0b in 2025. This would be a substantial 38% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 41% to kr6.86. Prior to this update, the analyst had been forecasting revenues of kr2.6b and earnings per share (EPS) of kr6.21 in 2025. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Zinzino

With these upgrades, we're not surprised to see that the analyst has lifted their price target 24% to kr134 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Zinzino's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Zinzino to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Zinzino could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.