Wirecard

WDI
Real-time TRADEGATE AG - 03/26 12:17:46 pm
124.6EUR
+23.62%

Is the distribution phase coming to an end ?

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 01/09/2019 | 04:41

long trade
Stop-loss triggered

Entry price : 139.65€
Target : 190€
Stop-loss : 125€
Potential : 36.05%

After accumulation, acceleration. Timing appears favorable to go long in shares of Wirecard and to anticipate an exit of the trading range on the upside.
Investors have an opportunity to buy the stock and target the € 190.

Summary

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


Strengths

● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

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

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

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

● 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

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

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

● With an expected P/E ratio at 46.83 and 33.72 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

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

Zonebourse.com 2019
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