Constellium
CSTM
Delayed Nyse - 09/25 10:02:02 pm
12.3USD
+0.41%

Is the distribution phase coming to an end ?

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David Meurisse
Contributor / Partner

Strategy published on : 03/13/2018 | 16:10

long trade
Stop-loss triggered

Entry price : 12.15$
Target : 13.7$
Stop-loss : 11.2$
Potential : 12.76%

The price of Constellium shares is range-bound. This phase will end sooner or later when volatility comes back.
Investors have an opportunity to buy the stock and target the $ 13.7.

Summary

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.54 for the 2018 fiscal year.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● 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 few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 8.59 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 13.1.

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

● The company's earnings releases usually do not meet expectations.

Zonebourse.com 2018
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