Total

FP
Real-time Euronext Paris - 04/23 05:36:31 pm
51.22EUR
+1.83%

Good timing to anticipate a continuation of the trend

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Anas Lozach
Analyst

Strategy published on : 02/08/2019 | 05:30

long trade
Target price hit

Entry price : 48.485€
Target : 51€
Stop-loss : 47.1€
Potential : 5.19%

Total shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Investors have an opportunity to buy the stock and target the € 51.

Summary

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


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 45.5 EUR in weekly data.

● The company returns high margins, thereby supporting business profitability.

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● Its low valuation, with P/E ratio at 9.48 and 9.06 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.

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

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● 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

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● The group usually releases earnings worse than estimated.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

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

Zonebourse.com 2019
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