Colruyt

COLR
Real-time TRADEGATE AG - 09/19 03:59:58 pm
47.105EUR
-2.06%

Hesitation should subside in favor of volatility

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Jordan Dufee
Analyst

Strategy published on : 09/11/2019 | 03:44

long trade
Live

Entry price : 48.27€
Target : 54.8€
Stop-loss : 45.7€
Potential : 13.53%

After several weeks of range-bound movement, shares in Colruyt could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.
Investors have an opportunity to buy the stock and target the € 54.8.

Summary

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

● 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 EUR 45.22, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

● Historically, the company has been releasing figures that are above expectations.

● The company shows low valuation levels, with an enterprise value at 0.66 times its sales.


Weaknesses

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

● The company does not generate enough profits, which is an alarming weak point.

● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

● The underlying tendency is negative on the weekly chart below the resistance at 56.44 EUR

Zonebourse.com 2019
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