Accor

AC
Real-time Euronext Paris - 03/21 10:56:50 am
37.17EUR
-1.01%

Back on an important level

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Jordan Dufee
Analyst

Strategy published on : 03/13/2019 | 04:48

long trade
Live

Entry price : 36.45€
Target : 40€
Stop-loss : 34.8€
Potential : 9.74%

The technical support around 35.62 EUR emanating from daily closing prices could trigger a technical rebound for Accor shares.
Investors have an opportunity to buy the stock and target the € 40.

Summary

● The company has poor fundamentals for a short-term investment strategy.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 35.71 EUR in weekly data.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 35.62 support.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● With a 2019 P/E ratio at 22.16 times the estimated earnings, the company operates at rather significant levels of earnings multiples.

● Analysts covering the stock have recently lowered their earnings forecast.

● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.

● The underlying tendency is negative on the weekly chart below the resistance at 41.9 EUR

Zonebourse.com 2019
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