Michelin

ML
Real-time Euronext Paris - 08/22 05:35:22 pm
93.2EUR
+0.37%

Good timing to anticipate a continuation of the trend

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Anas Lozach
Analyst

Strategy published on : 08/09/2019 | 02:55

long trade
Stop-loss triggered

Entry price : 96.28€
Target : 105.7€
Stop-loss : 92.2€
Potential : 9.78%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Investors have an opportunity to buy the stock and target the € 105.7.

Summary

● 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 solid fundamentals for a short-term investment strategy.


Strengths

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● Historically, the company has been releasing figures that are above expectations.

● As regards fundamentals, the enterprise value to sales ratio is at 0.93 for the current period. Therefore, the company is undervalued.

● Its low valuation, with P/E ratio at 9.04 and 8.19 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Zonebourse.com 2019
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