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Massimo Zanetti Beverage Group S.p.A. (BIT:MZB): Are Analysts Bullish?

Simply Wall St

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In December 2018, Massimo Zanetti Beverage Group S.p.A. (BIT:MZB) released its latest earnings announcement, which revealed that the business benefited from a strong tailwind, leading to a double-digit earnings growth of 10%. Below is a brief commentary on my key takeaways on how market analysts view Massimo Zanetti Beverage Group's earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Massimo Zanetti Beverage Group

Analysts' outlook for next year seems pessimistic, with earnings falling by -0.2%. But in the following year, there is a complete contrast in performance, with reaching double digit 6.0% compared to today’s level and continues to increase to €21m in 2022.

BIT:MZB Past and Future Earnings, May 10th 2019

Even though it’s helpful to be aware of the rate of growth year by year relative to today’s value, it may be more beneficial to evaluate the rate at which the company is moving on average every year. The advantage of this approach is that we can get a better picture of the direction of Massimo Zanetti Beverage Group's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 2.9%. This means, we can expect Massimo Zanetti Beverage Group will grow its earnings by 2.9% every year for the next couple of years.

Next Steps:

For Massimo Zanetti Beverage Group, I've compiled three relevant aspects you should further examine:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is MZB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MZB is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MZB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.