Atlas Copco

ATCO A
Real-time CHI-X EUROPE LIMITED. - 09/19 11:29:53 am
313.35SEK
+0.32%

The stock forcefully approaches new pivot levels

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Jordan Dufee
Analyst

Strategy published on : 09/10/2019 | 03:23

long trade under condition
Live

Entry price : 305SEK
Target : 345SEK
Stop-loss : 278SEK
Cancellation Level : 264SEK
Potential : 13.11%

Atlas Copco shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Investors should benefit from the breakout of the SEK 305 level to target the SEK 345.

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 group's high margin levels account for strong profits.

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

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

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

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 250.3 SEK


Weaknesses

● The stock is close to a major daily resistance at SEK 301.8, which should be gotten rid of so as to gain new appreciation potential.

● With an enterprise value anticipated at 3.69 times the sales for the current fiscal year, the company turns out to be overvalued.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

Zonebourse.com 2019
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