Glanbia plc

GL9
Delayed Irish Stock Exchange - 01/23 05:30:01 pm
10.8EUR
+0.47%

Glanbia plc : Is the distribution phase coming to an end ?

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Jordan Dufee
Analyst

Strategy published on : 01/14/2020 | 04:08

long trade
Live

Entry price : 10.25€
Target : 11.6€
Stop-loss : 9.64€
Potential : 13.17%

There has been very little movement in Glanbia plc's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Investors have an opportunity to buy the stock and target the € 11.6.

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 solid fundamentals for a short-term investment strategy.


Strengths

● 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 9.81 EUR in weekly data.

● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 69% by 2021.

● As regards fundamentals, the enterprise value to sales ratio is at 0.99 for the current period. Therefore, the company is undervalued.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

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

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


Weaknesses

● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.

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

● Below the resistance at 13.54 EUR, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2020
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