Eurofins Scientific
ERF
Real-time Euronext Paris - 01/17 05:35:22 pm
331EUR
-0.72%

A technical turn-around configuration

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Jordan Dufee
Analyst

Strategy published on : 01/09/2019 | 02:45

long trade
Live

Entry price : 357.2€
Target : 420€
Stop-loss : 310€
Potential : 17.58%

The technical chart pattern of Eurofins Scientific S.E. shares shows signs of a medium term reversal, which speaks in favor of opening new long positions.
Investors have an opportunity to buy the stock and target the € 420.

Summary

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

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 62% by 2020.

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

● The group usually releases upbeat results with huge surprise rates.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

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

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The company is in debt and has limited leeway for investment

● With a 2018 P/E ratio at 23.42 times the estimated earnings, the company operates at rather significant levels of earnings multiples.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 402.85 EUR

Zonebourse.com 2019
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