AtoS

ATO
Real-time Euronext Paris - 10/18 05:35:26 pm
65.38EUR
-0.97%

Back on a long term support level

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Jordan Dufee
Analyst

Strategy published on : 10/10/2019 | 04:31

long trade
Live

Entry price : 64.14€
Target : 70€
Stop-loss : 61€
Potential : 9.14%

The decline over the past weeks has brought the price of AtoS shares back to an important technical support level at 63.26 EUR. This represents an opportunity to take advantage of these prices levels.
Investors have an opportunity to buy the stock and target the € 70.

Summary

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 63.26, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● As regards fundamentals, the enterprise value to sales ratio is at 0.82 for the current period. Therefore, the company is undervalued.

● With a P/E ratio at 11.72 for the current year and 9.93 for next year, earnings multiples are highly attractive compared with competitors.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

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

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

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the past year, analysts have significantly revised downwards their profit estimates.

● The underlying tendency is negative on the weekly chart below the resistance at 77.78 EUR

Zonebourse.com 2019
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