Airbus SE

AIR
Real-time Euronext Paris - 04/02 05:38:58 pm
50.27EUR
-3.7%

Airbus SE : Close to a key level on the weekly chart

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Strategy published on : 03/26/2020 | 03:21

long trade
Live

Entry price : 60.45€
Target : 77€
Stop-loss : 49.9€
Potential : 27.38%

Technically, timing appears good within a medium term time horizon to buy shares in Airbus SE. The technical support area at 56.58 EUR effectively limits downside risk and should allow the stock to get back into an upward dynamic.
Investors have an opportunity to buy the stock and target the € 77.

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 56.58 EUR in weekly data.

● The company is in a robust financial situation considering its net cash and margin position.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.56 for the 2020 fiscal year.

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

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


Weaknesses

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● 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 company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

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

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 92.89 EUR

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