Pernod Ricard

RI
Real-time Euronext Paris - 07/19 10:44:20 am
157.35EUR
+0.22%

The support in the accumulation zone can be expected to break down

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Jordan Dufee
Analyst

Strategy published on : 07/12/2019 | 06:01

short sell under condition
Live

Entry price : 156€
Target : 146€
Stop-loss : 161.4€
Cancellation Level : 166€
Potential : 6.41%

The price of the stock, which is currently testing the lower bounds of the accumulation phase, should prolong its downward movement over the upcoming trading sessions.
Investors should consider opening a short trade on the Breakdown of the € 156 level and target € 146.

Strengths

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

● 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.

● The stock is in a well-established, long-term rising trend above the technical support level at 145.6 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 firm trades with high earnings multiples: 25.73 times its 2019 earnings per share.

Zonebourse.com 2019
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