Strategy published on : 03/14/2019 | 03:14
long tradeStop-loss triggered
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.
● 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.
● 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.