Bayer
BAYN
Real-time TRADEGATE AG - 09/20 06:54:43 pm
76.175EUR
+2.77%

Still trending down

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 07/11/2018 | 09:17

short sell
Target price hit

Entry price : 93.96€
Target : 88.05€
Stop-loss : 100€
Potential : 6.29%

The trend in the price decline should not be put into question for stocks in Bayer over the coming trading sessions given the current chart pattern.
Investors should open a short trade and target the € 88.05.

Summary

● The company has poor 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 88.91 EUR in weekly data.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

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

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


Weaknesses

● The company is in debt and has limited leeway for investment

● 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.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

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

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

Zonebourse.com 2018
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