Faurecia
EO
Real-time Euronext Paris - 12/13 05:35:08 pm
32.18EUR
-0.37%

A good timing to anticipate a change in the trend

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Anas Lozach
Analyst

Strategy published on : 12/04/2018 | 08:46

long trade
Stop-loss triggered

Entry price : 36.02€
Target : 42€
Stop-loss : 33.5€
Potential : 16.6%

The recent downside mouvement appears to lose momentum which could allow Faurecia shares to regain a positive medium term outlook.
Investors have an opportunity to buy the stock and target the € 42.

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

● The share is getting closer to its long-term support in weekly data, at EUR 34.42, which offers good timing for buyers.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 34.42 support.

● The stock, which is currently worth 2018 to 0.29 times its sales, is clearly overvalued in comparison with peers.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

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

● 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.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● Analysts covering the stock have recently lowered their earnings forecast.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 50.7 EUR

Zonebourse.com 2018
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