Strategy published on : 07/12/2018 | 08:59
Entry price : 98.78€
Target : 105€
Stop-loss : 91.88€
Potential : 6.3%
Shares in Beiersdorf show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Investors have an opportunity to buy the stock and target the € 105.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● The group's high margin levels account for strong profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● 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.
● The group usually releases upbeat results with huge surprise rates.
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at EUR 100.7.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● With an expected P/E ratio at 28.92 and 26.84 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.