ERAMET ● 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 49.16 EUR in weekly data.
● The close medium term support offers good timing for purchasing the stock.
● The company is in a robust financial situation considering its net cash and margin position.
● The company shows low valuation levels, with an enterprise value at 0.31 times its sales.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 90.2 EUR
