ACERINOX S.A.

ACX
Real-time Estimate Quote. Real-time Estimate  - 09/16 11:15:29 am
11.548EUR +0.59%

Acerinox S.A. : The underlying trend is to the upside

07/29/2021 | 05:59am
Eduardo Yusseppe Quiñonez Diaz
Junior Analyst

Strategy published on : 07/29/2021 | 05:59

long trade
Live

Entry price : 11.425€
Target : 14€
Stop-loss : 10€
Potential : 22.54%

The underlying tendency is to the upside for shares in Acerinox S.A. and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Investors have an opportunity to buy the stock and target the € 14.

Summary

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

● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.


Strengths

● The company's profit outlook over the next few years is a strong asset.

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

● The stock, which is currently worth 2021 to 0.59 times its sales, is clearly overvalued in comparison with peers.

● Given the positive cash flows generated by its business, the company's valuation level is an asset.

● 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.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

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

● For several months, analysts have been revising their EPS estimates roughly upwards.

● 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.

● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.


Weaknesses

● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.

● The overall consensus opinion of analysts has deteriorated sharply over the past four months.

● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

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

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