|Contributor / Partner
Strategy published on : 07/08/2019 | 10:25
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.
● The company has solid fundamentals for a short-term investment strategy.
● 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.
● 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.