Publicis Groupe
PUB
Real-time Euronext Paris - 12/13 05:37:16 pm
49.66EUR
-0.08%

Close to a support level

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Jordan Dufee
Analyst

Strategy published on : 12/05/2018 | 11:42

long trade under condition
On stand-by

Entry price : 50.7€
Target : 55.5€
Stop-loss : 47.7€
Cancellation Level : 46€
Potential : 9.47%

Publicis Groupe have been fluctuating horizontally for several weeks. As the share price returns to the lower bound of the accumulation zone, it yoffers a good timing for investors to open new long positions.
Investors should benefit from the breakout of the € 50.7 level to target the € 55.5.

Summary

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


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 50.22 EUR in weekly data.

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

● The company returns high margins, thereby supporting business profitability.

● The company is in a robust financial situation considering its net cash and margin position.

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

● This company will be of major interest to investors in search of a high dividend stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

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

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

● Revenue estimates are regularly revised downwards for the current and coming years.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● The underlying tendency is negative on the weekly chart below the resistance at 56.06 EUR

Zonebourse.com 2018
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