Strategy published on : 05/22/2020 | 02:39
Entry price : 28.52€
Target : 25€
Stop-loss : 32€
Potential : 12.34%
The price of shares in Imerys is close to a major medium term resistance level around 30.03 EUR. A correction phase over the short term appears to be the logical outcome.
Investors should open a short trade and target the € 25.
● As regards fundamentals, the enterprise value to sales ratio is at 0.98 for the current period. Therefore, the company is undervalued.
● The company is one of the best yield companies with high dividend expectations.
● The stock is close to a major daily resistance at EUR 30.03, which should be gotten rid of so as to gain new appreciation potential.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● Analysts covering the stock have recently lowered their earnings forecast.
● 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.
● The underlying tendency is negative on the weekly chart below the resistance at 32.27 EUR