CGG

CGG
Real-time Euronext Paris - 07/19 10:06:33 am
1.7885EUR
-0.22%

The recovery movement can be expected to weaken

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Patrick Rejaunier
Equity Analyst

Strategy published on : 07/09/2019 | 03:30

short sell
Live

Entry price : 1.7905€
Target : 1.6€
Stop-loss : 1.91€
Potential : 10.64%

The technical rebound should come to an end when reaching the current resistance zone while the bearish movement should once again gain in force.
Investors should open a short trade and target the € 1.6.

Summary

● The company usually posts poor financials for mid or long term investments.

● For a short-term investment strategy, the company has poor fundamentals.


Strengths

● 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 difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● Low profitability weakens the company.

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

● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.

● 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 four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● 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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