Strategy published on : 06/29/2020 | 11:24
Entry price : 7.12CAD
Target : 8.02CAD
Stop-loss : 6.715CAD
Potential : 12.64%
Below the resistance zone that is currently being tested, the potential for new gains appears limited for shares in Lundin Mining Corporation. The stock's technical chart pattern suggests however that the level will be broken.
Investors have an opportunity to buy the stock and target the CAD 8.02.
● 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 poor fundamentals for a short-term investment strategy.
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 36% by 2022.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Stock prices approach a strong long-term resistance in weekly data at CAD 7.84.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● 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, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● 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.