Pernod Ricard

RI
Real-time Euronext Paris - 06/14 05:35:04 pm
157.85EUR
-0.69%

A good level to buy

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Anas Lozach
Analyst

Strategy published on : 01/10/2019 | 08:20

long trade
Target price hit

Entry price : 137.5€
Target : 143.3€
Stop-loss : 134.5€
Potential : 4.22%

The recent downturn has taken Pernod Ricard shares close to a medium term support level around 137.45 EUR. The timing for a long trade in the stock appears good.
Investors have an opportunity to buy the stock and target the € 143.3.

Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 138, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● The tendency within the weekly time frame is positive above the technical support level at 138 EUR


Weaknesses

● The company is in debt and has limited leeway for investment

● The company's earnings releases usually do not meet expectations.

● Based on current prices, the company has particularly high valuation levels.

● The company benefits from high valuations in earnings multiples.

Zonebourse.com 2019
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