Genmab

GEN
Real-time CHI-X EUROPE LIMITED. - 02/19 10:58:31 am
982.4DKK
-2.09%

A good level to buy

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Anas Lozach
Analyst

Strategy published on : 02/07/2019 | 05:42

long trade
Target price hit

Entry price : 962DKK
Target : 1020DKK
Stop-loss : 928.7DKK
Potential : 6.03%

Shares in Genmab show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Investors have an opportunity to buy the stock and target the DKK 1020.

Summary

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

● The company has poor fundamentals for a short-term investment strategy.


Strengths

● The close medium term support offers good timing for purchasing the stock.

● The prospective high growth for the next fiscal years is among the main assets of the company

● 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.

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

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

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

● The company's "enterprise value to sales" ratio is among the highest in the world.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 46.74 times its estimated earnings per share for the ongoing year.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

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

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● For the past year, analysts have significantly revised downwards their profit estimates.

Zonebourse.com 2019
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