Strategy published on : 01/08/2019 | 02:58
long tradeTarget price hit
Entry price : 37.1€
Target : 40€
Stop-loss : 35.3€
Potential : 7.82%
The technical chart pattern of Accor shares shows signs of a reversal that argue in favor of a return to a positive outlook over the medium term.
Investors have an opportunity to buy the stock and target the € 40.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● For a short-term investment strategy, the company has poor fundamentals.
● The share is getting closer to its long-term support in weekly data, at EUR 35.73, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 35.62 support.
● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● 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 covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● 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.
● The group usually releases earnings worse than estimated.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 32.03 times its estimated earnings per share for the ongoing year.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 42.02 EUR