IMERYS

NK
Real-time Euronext Paris - 05/26 02:09:24 pm
30.2EUR
+2.37%

Imerys : A resistance level that suggests downside risk

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Jordan Dufee
Analyst

Strategy published on : 05/22/2020 | 02:39

short sell
Live

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.

Strengths

● 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.


Weaknesses

● 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

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