Soitec
SOI
Real-time Euronext Paris - 01/17 05:35:15 pm
58.85EUR
-0.93%

The revival in interest should continue

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Anas Lozach
Analyst

Strategy published on : 01/10/2019 | 08:51

long trade
Live

Entry price : 55.45€
Target : 62€
Stop-loss : 51.8€
Potential : 11.81%

The recent break-out to the upside has created potential for further gains for shares in Soitec.
Investors have an opportunity to buy the stock and target the € 62.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● The close medium term support offers good timing for purchasing the stock.

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

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

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The company's earnings releases usually do not meet expectations.

● The company's enterprise value to sales, at 4.21 times its current sales, is high.

● With a 2019 P/E ratio at 23.51 times the estimated earnings, the company operates at rather significant levels of earnings multiples.

● Below the resistance at 61.97 EUR, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2019
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