Sopra Steria Group

SOP
Real-time Euronext Paris - 05/20 01:07:11 pm
103.9EUR
-3.35%

Volatility should make a big comeback

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Jordan Dufee
Analyst

Strategy published on : 03/11/2019 | 06:58

long trade
Stop-loss triggered

Entry price : 107.5€
Target : 130€
Stop-loss : 99€
Potential : 20.93%

An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Investors have an opportunity to buy the stock and target the € 130.

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 company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.6 for the 2019 fiscal year.

● With a P/E ratio at 11.59 for the current year and 9.59 for next year, earnings multiples are highly attractive compared with competitors.

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

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

● The underlying tendency is negative on the weekly chart below the resistance at 117 EUR

Zonebourse.com 2019
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