Strategy published on : 05/21/2020 | 03:27
Entry price : 11.4€
Target : 13€
Stop-loss : 10.4€
Potential : 14.04%
An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Investors have an opportunity to buy the stock and target the € 13.
● 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.
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 34% by 2022.
● The company is in a robust financial situation considering its net cash and margin position.
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2020 to 0.64 times its sales, is clearly overvalued in comparison with peers.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 11.86 for the current year.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Technically, the stock approaches a strong medium-term resistance at EUR 12.46.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● Below the resistance at 13.27 EUR, the stock shows a negative configuration when looking looking at the weekly chart.