Brenntag SE : Take advantage of the uptrend
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€87.79 | €0 | €82 | -100% |
The financial elements are solid. Since 2010, revenues and margins are going up. This year, the group announced a net profit of 277 million euros against 144 million last year, net earnings per share stood at 5.39 EUR compared to 2.93 EUR a year earlier. For fiscal 2012, EPS has been regularly revised upwards by the consensus of analysts; expected below 6 EUR in March 2011, as today it is close to 6.5 EUR.
On the markets, the stock follows an uptrend supported by its moving averages to 20 times in weekly and daily data. Introduced in March 2010 to EUR 51.1, the share is now moving close to EUR 87.5. No sign of reversal are showing, especially as indicators appeared not anymore in the overbought area. The upside potential is intact, and the upward crossing of the moving average at 50 weeks by 20 weeks gives some potential.
Therefore, the current zone will allow investors to position themselves as buyer. The psychological threshold of 100 EUR will define a major goal, while the penetration of 82.15 EUR trigger our stop-loss.