Danone
BN
Real-time Euronext Paris - 08/20 05:35:17 pm
68.04EUR
+0.52%

Underpinned by a support level

Envoyer par e-mail
Jordan Dufee
Analyst

Strategy published on : 06/11/2018 | 09:04

long trade
Stop-loss triggered

Entry price : 64.73€
Target : 67.5€
Stop-loss : 63.3€
Potential : 4.28%

The technical support around 63.71 EUR emanating from daily closing prices could trigger a technical rebound for Danone shares.
Investors have an opportunity to buy the stock and target the € 67.5.

Summary

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


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 EUR 63.65 EUR in weekly data.

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

● The company returns high margins, thereby supporting business profitability.

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● This company will be of major interest to investors in search of a high dividend stock.

● Analysts covering this company mostly recommend stock overweighting or purchase.

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


Weaknesses

● According to forecast, a sluggish sales growth is expected for the next fiscal years.

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

● 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.

Zonebourse.com 2018
Envoyer par e-mail