Total

FP
Real-time Euronext Paris - 05/21 05:37:19 pm
49.765EUR
+1.1%

Attractive timing with a long term view to go long again

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Jordan Dufee
Analyst

Strategy published on : 05/10/2019 | 02:53

long trade
Target price hit

Entry price : 47.11€
Target : 49.25€
Stop-loss : 45€
Potential : 4.54%

The decline over the past weeks has brought the price of Total shares back to an important technical support level at 46.05 EUR. This represents an opportunity to take advantage of these prices levels.
Investors have an opportunity to buy the stock and target the € 49.25.

Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 46.05, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

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

● As regards fundamentals, the enterprise value to sales ratio is at 0.76 for the current period. Therefore, the company is undervalued.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

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

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

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


Weaknesses

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

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

Zonebourse.com 2019
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