Wacker Chemie AG

WCH
Delayed Frankfurt - 10/18 05:35:14 pm
64.98EUR
-1.01%

Comeback of a rising trend ?

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 10/07/2019 | 06:19

long trade
Live

Entry price : 59.7€
Target : 70.76€
Stop-loss : 55€
Potential : 18.53%

The technical chart pattern of Wacker Chemie AG shares shows signs of a medium term reversal, which speaks in favor of opening new long positions.
Investors have an opportunity to buy the stock and target the € 70.76.

Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 55.75, which offers good timing for buyers.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 59.04 support.

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

● 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

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● The company sustains low margins.

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

● For the past seven days, analysts have been lowering their EPS expectations for the company.

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

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

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 74.1 EUR

Zonebourse.com 2019
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