Sopra Steria Group

SOP
Real-time Euronext Paris - 02/19 05:35:09 pm
91.9EUR
+2.17%

The calm spell can be taken advantage of to put on new positions

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Anas Lozach
Analyst

Strategy published on : 02/05/2019 | 09:42

long trade
Stop-loss triggered

Entry price : 89.2€
Target : 100€
Stop-loss : 82.7€
Potential : 12.11%

The price of Sopra Steria Group shares is range-bound. This phase will end sooner or later when volatility comes back.
Investors have an opportunity to buy the stock and target the € 100.

Summary

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

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 77.9, which offers good timing for buyers.

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

● The stock, which is currently worth 2018 to 0.58 times its sales, is clearly overvalued in comparison with peers.

● Analysts covering this company mostly recommend stock overweighting or purchase.

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


Weaknesses

● For the last few months, analysts have been revising downwards their earnings forecast.

● For the past year, analysts have significantly revised downwards their profit estimates.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 117 EUR

Zonebourse.com 2019
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