Air France-KLM

AF
Real-time Euronext Paris - 03/25 02:03:37 pm
9.886EUR
-0.6%

Good timing to anticipate a continuation of the trend

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Anas Lozach
Analyst

Strategy published on : 03/15/2019 | 04:44

long trade
Stop-loss triggered

Entry price : 10.765€
Target : 11.7€
Stop-loss : 10.1€
Potential : 8.69%

Air France-KLM shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Investors have an opportunity to buy the stock and target the € 11.7.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The close medium term support offers good timing for purchasing the stock.

● Historically, the company has been releasing figures that are above expectations.

● The stock, which is currently worth 2019 to 0.4 times its sales, is clearly overvalued in comparison with peers.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● For the past twelve months, EPS forecast has been revised upwards.

● The tendency within the weekly time frame is positive above the technical support level at 9.12 EUR


Weaknesses

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2019
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