Boohoo Group PLC

BOO
Delayed London Stock Exchange - 07/19 09:30:56 am
214.8GBp
+0.47%

Good timing to go long again

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Anas Lozach
Analyst

Strategy published on : 07/10/2019 | 06:04

long trade
Live

Entry price : 208.4GBp
Target : 225GBp
Stop-loss : 200.2GBp
Potential : 7.97%

The recent downturn has taken Boohoo Group PLC shares close to a medium term support level around 204.3 GBp. The timing for a long trade in the stock appears good.
Investors have an opportunity to buy the stock and target the GBp 225.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


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 GBp 198.25 GBp in weekly data.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● 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.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● 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

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 198.25 GBp


Weaknesses

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 48.09 times its estimated earnings per share for the ongoing year.

● For the last few months, analysts have been revising downwards their earnings forecast.

Zonebourse.com 2019
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