Lufthansa Group AG

LHA
Real-time TRADEGATE AG - 09/17 03:58:01 pm
14.54EUR
+0.03%

Continuation of the downward trend

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 09/09/2019 | 04:20

short sell
Live

Entry price : 13.75€
Target : 12€
Stop-loss : 15€
Potential : 12.73%

The movement to the downside is still in force and should gain in strength over the next trading sessions based on our expectations.
Investors should open a short trade and target the € 12.

Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 13.1, which offers good timing for buyers.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 12.85 support.

● The group usually releases upbeat results with huge surprise rates.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.34 for the 2019 fiscal year.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● This company will be of major interest to investors in search of a high dividend stock.


Weaknesses

● According to forecast, a sluggish sales growth is expected for the next fiscal years.

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

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

● 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.

● The underlying tendency is negative on the weekly chart below the resistance at 17.69 EUR

Zonebourse.com 2019
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