LEONI AG

LEO
Delayed Frankfurt - 04/18 05:35:11 pm
21.35EUR
+1.52%

Continuation of the downward trend

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 01/10/2019 | 03:44

short sell
Stop-loss triggered

Entry price : 30.88€
Target : 25€
Stop-loss : 32.5€
Potential : 19.04%

The underlying trend is clearly bearish for stocks in LEONI AG. This should continue to be the case over the coming trading sessions.
Investors should open a short trade and target the € 25.

Summary

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.33 for the 2018 fiscal year.

● Its low valuation, with P/E ratio at 8.2 and 7.7 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.

● The company is one of the best yield companies with high dividend expectations.


Weaknesses

● Technically, the stock approaches a strong medium-term resistance at EUR 33.96.

● Revenue estimates are regularly revised downwards for the current and coming years.

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

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

● Below the resistance at 37.44 EUR, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2019
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