Strategy published on : 03/12/2019 | 07:17
long trade under conditionLive
Entry price : 13.45€
Target : 17€
Stop-loss : 12.3€
Cancellation Level : 12€
Potential : 26.39%
RIB Software SE shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Investors should benefit from the breakout of the € 13.45 level to target the € 17.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● For a short-term investment strategy, the company has poor fundamentals.
● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Stock prices approach a strong long-term resistance in weekly data at EUR 14.27.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The company's enterprise value to sales, at 3.43 times its current sales, is high.
● With an expected P/E ratio at 41.35 and 34.97 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last few months, analysts have been revising downwards their earnings forecast.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 14.27 EUR