Zinzino AB (publ) (STO:ZZ B) Just Reported And Analysts Have Been Lifting Their Price Targets

The annual results for Zinzino AB (publ) (STO:ZZ B) were released last week, making it a good time to revisit its performance. It was an okay report, and revenues came in at kr1.8b, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Zinzino after the latest results.

Check out our latest analysis for Zinzino

Taking into account the latest results, the most recent consensus for Zinzino from sole analyst is for revenues of kr1.92b in 2024. If met, it would imply a solid 8.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.1% to kr5.05. In the lead-up to this report, the analyst had been modelling revenues of kr1.86b and earnings per share (EPS) of kr4.71 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 24% to kr78.00per share.

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 Zinzino's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% annually. So it's pretty clear that, while Zinzino's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Zinzino following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Zinzino going out as far as 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.