Straumann Holding
STMN
Delayed Swiss Exchange - 09/21 05:30:19 pm
734CHF
-2.13%

No turn-around in sight

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Patrick Rejaunier
Equity Analyst

Strategy published on : 10/10/2017 | 09:00

long trade on a pullback
Conditional Order Terminated

Entry price : 630CHF
Target : 660CHF
Stop-loss : 618CHF
Cancellation Level : 655CHF
Potential : 4.76%

Shares in Straumann Holding show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Investors should buy the stock at current prices near CHF 630 in order to target the CHF 660.

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

● 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.

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

● Sales forecast by analysts have been recently revised upwards.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 476.83 CHF


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● Technically, the stock approaches a strong medium-term resistance at CHF 660.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 41.4 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

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