Rocket Internet SE

RKET
Real-time TRADEGATE AG - 03/21 05:30:00 am
22.91EUR
-0.52%

Buying pressure

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 03/14/2019 | 04:14

long trade
Live

Entry price : 23.36€
Target : 26€
Stop-loss : 22€
Potential : 11.3%

The return of higher trading volumes and volatility could reflect theoretically the starting point of the return of a new upward move for shares in Rocket Internet SE. The upward movement can be expected to continue.
Investors have an opportunity to buy the stock and target the € 26.

Strengths

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Sales forecast by analysts have been recently revised upwards.

● For the past twelve months, EPS forecast has been revised upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

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


Weaknesses

● Technically, the stock approaches a strong medium-term resistance at EUR 23.84.

● Low profitability weakens the company.

● 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.

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

● With an expected P/E ratio at 47.92 and -38.52 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

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

● Below the resistance at 25 EUR, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2019
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