Solvay

SOLB
Real-time TRADEGATE AG - 06/25 06:32:01 am
89.36EUR
-0.02%

Close to an important medium term support level

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Jordan Dufee
Analyst

Strategy published on : 06/07/2019 | 04:57

long trade
Live

Entry price : 86.24€
Target : 95.12€
Stop-loss : 83€
Potential : 10.3%

The medium term support area around 84.08 EUR should allow Solvay shares to re-establish an upward trend in the short term.
Investors have an opportunity to buy the stock and target the € 95.12.

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 share is getting closer to its long-term support in weekly data, at EUR 84.08, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● The group's high margin levels account for strong profits.

● Historically, the company has been releasing figures that are above expectations.

● The company is one of the best yield companies with high dividend expectations.

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


Weaknesses

● Analysts covering the stock have recently lowered their earnings forecast.

● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 96.38 EUR

Zonebourse.com 2019
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