Air Liquide

AI
Real-time Euronext Paris - 04/06 05:38:37 pm
116.5EUR
+1.13%

Air Liquide : Attractive timing with a long term view to go long again

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Jordan Dufee
Analyst

Strategy published on : 03/26/2020 | 02:24

long trade on a pullback
Conditional Order Terminated

Entry price : 99€
Target : 115€
Stop-loss : 90€
Cancellation Level : 112€
Potential : 16.16%

Air Liquide shares are sitting close to an important technical support area around 101.36 EUR based on weekly price data. Against this backdrop, investors can use this good timing for new long positions.
Investors should buy the stock at current prices near € 99 in order to target the € 115.

Summary

● The company has solid 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 101.36 EUR in weekly data.

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

● Analysts covering this company mostly recommend stock overweighting or purchase.


Weaknesses

● The group shows a rather high level of debt in proportion to its EBITDA.

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

● With an enterprise value anticipated at 2.82 times the sales for the current fiscal year, the company turns out to be overvalued.

● The company benefits from high valuations in earnings multiples.

● Revenue estimates are regularly revised downwards for the current and coming years.

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