Strategy published on : 01/11/2019 | 08:31
Entry price : 104.85€
Target : 120€
Stop-loss : 98€
Potential : 14.45%
Safran shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Investors have an opportunity to buy the stock and target the € 120.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The share is getting closer to its long-term support in weekly data, at EUR 99.7, which offers good timing for buyers.
● The group's high margin levels account for strong profits.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 99.7 EUR
● 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.
● With a 2018 P/E ratio at 23.28 times the estimated earnings, the company operates at rather significant levels of earnings multiples.