Strategy published on : 09/11/2019 | 03:57
Entry price : 129.9€
Target : 145€
Stop-loss : 121.8€
Potential : 11.62%
Shares in Sartorius Stedim Biotech are retreating towards the lower bound of a horizontal trading range. Investors could use the proximity of this support area to initiate new long positions.
Investors have an opportunity to buy the stock and target the € 145.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 122.3 support.
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 43% by 2021.
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The stock is in a well-established, long-term rising trend above the technical support level at 111.1 EUR
● Based on current prices, the company has particularly high valuation levels.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 47.69 times its estimated earnings per share for the ongoing year.
● The company is not the most generous with respect to shareholders' compensation.
● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.