Bombardier, Inc.

BBD.B
Delayed Toronto Stock Exchange - 07/18 10:00:00 pm
2.12CAD
-3.64%

A technical turn-around configuration

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David Meurisse
Contributor / Partner

Strategy published on : 07/08/2019 | 10:25

long trade
Live

Entry price : 2.26CAD
Target : 2.85CAD
Stop-loss : 1.95CAD
Potential : 26.11%

Bombardier, Inc. reflects attractive technical aspects that could allow investors to expect a trend reversal over the medium term.
Investors have an opportunity to buy the stock and target the CAD 2.85.

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 CAD 1.67, which offers good timing for buyers.

● The company shows low valuation levels, with an enterprise value at 0.64 times its sales.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For several months, analysts have been revising their EPS estimates roughly upwards.

● 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.


Weaknesses

● The company has insufficient levels of profitability.

● The group shows a rather high level of debt in proportion to its EBITDA.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The group usually releases earnings worse than estimated.

● With an expected P/E ratio at 45.92 and 15.41 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.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● 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 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

Zonebourse.com 2019
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