Strategy published on : 06/10/2019 | 02:30
Entry price : 42.65€
Target : 47€
Stop-loss : 40€
Potential : 10.2%
Edenred's shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Investors have an opportunity to buy the stock and target the € 47.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● Sales forecast by analysts have been recently revised upwards.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The stock is in a well-established, long-term rising trend above the technical support level at 36.08 EUR
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 32.48 and 28.79 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.