Neopost

NEO
Real-time Euronext Paris - 02/19 05:35:04 pm
23.54EUR
+1.73%

Back on an important level

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Anas Lozach
Analyst

Strategy published on : 02/06/2019 | 12:03

long trade
Live

Entry price : 21.76€
Target : 23.9€
Stop-loss : 20.9€
Potential : 9.83%

The selling pressure regarding Neopost shares could subside shortly. In fact, the support area that is currently being tested around 21.46 EUR has come into play and could, at least in the short term, keep the downside pressure at bay.
Investors have an opportunity to buy the stock and target the € 23.9.

Summary

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


Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 20.98, which offers good timing for buyers.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 21.46 support.

● The group's high margin levels account for strong profits.

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

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

● Sales forecast by analysts have been recently revised upwards.


Weaknesses

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● The group shows a rather high level of debt in proportion to its EBITDA.

Zonebourse.com 2019
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