Evotec AG

EVT
Real-time TRADEGATE AG - 05/21 03:59:58 pm
23.46EUR
+1.96%

Good timing to go long again

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 05/10/2019 | 04:00

long trade
Live

Entry price : 22.31€
Target : 26€
Stop-loss : 20.34€
Potential : 16.54%

The medium term support area around 20.34 EUR should allow Evotec AG shares to re-establish an upward trend in the short term.
Investors have an opportunity to buy the stock and target the € 26.

Summary

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

● For a short-term investment strategy, the company has poor fundamentals.


Strengths

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● The company is in a robust financial situation considering its net cash and margin position.

● Historically, the company has been releasing figures that are above expectations.

● 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.

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 19 EUR


Weaknesses

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● Based on current prices, the company has particularly high valuation levels.

● With an expected P/E ratio at 62.24 and 56.18 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● For the last few months, analysts have been revising downwards their earnings forecast.

Zonebourse.com 2019
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