Technicolor

TCH
Real-time Euronext Paris - 07/19 04:56:47 pm
0.7405EUR
+0.07%

The downward trend should continue

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Jordan Dufee
Analyst

Strategy published on : 05/09/2019 | 04:18

short sell
Target price hit

Entry price : 0.998€
Target : 0.85€
Stop-loss : 1.1€
Potential : 14.83%

The underlying trend is clearly bearish for stocks in Technicolor. This should continue to be the case over the coming trading sessions.
Investors should open a short trade and target the € 0.85.

Summary

● The company usually posts poor financials for mid or long term investments.


Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 0.89, which offers good timing for buyers.

● The stock, which is currently worth 2019 to 0.27 times its sales, is clearly overvalued in comparison with peers.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Low profitability weakens the company.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

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

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

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

Zonebourse.com 2019
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