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New Forecasts: Here's What Analysts Think The Future Holds For ZOO Digital Group plc (LON:ZOO)

Simply Wall St
·2 min read

Shareholders in ZOO Digital Group plc (LON:ZOO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that ZOO Digital Group will make substantially more sales than they'd previously expected. ZOO Digital Group has also found favour with investors, with the stock up a remarkable 11% to US$0.68 over the past week. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the two analysts covering ZOO Digital Group are now predicting revenues of US$35m in 2020. If met, this would reflect a major 24% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$32m of revenue in 2020. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

Check out our latest analysis for ZOO Digital Group

AIM:ZOO Past and Future Earnings April 22nd 2020
AIM:ZOO Past and Future Earnings April 22nd 2020

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of ZOO Digital Group'shistorical trends, as next year's 24% revenue growth is roughly in line with 25% annual revenue growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.2% next year. So it's pretty clear that ZOO Digital Group is forecast to grow substantially faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for ZOO Digital Group this year. The analysts also expect revenues to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at ZOO Digital Group.

Want more information? At least one of ZOO Digital Group's two analysts has provided estimates out to 2021, which can be seen for free on our platform here.

We also provide an overview of the ZOO Digital Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.

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. Thank you for reading.