Accor

AC
Real-time Euronext Paris - 03/26 05:35:27 pm
36.62EUR
-0.68%

The comeback of an upward trend can be anticipated

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Anas Lozach
Analyst

Strategy published on : 01/08/2019 | 03:58

long trade
Target 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.

Summary

● 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.


Strengths

● 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.


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.

● 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

Zonebourse.com 2019
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