Strategy published on : 04/08/2021 | 03:00
Entry price : 278.3SEK
Target : 294SEK
Stop-loss : 270SEK
Potential : 5.64%
The technical chart pattern of Essity AB shares shows signs of a reversal that argue in favor of a return to a positive outlook over the medium term.
Investors have an opportunity to buy the stock and target the SEK 294.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The underlying tendency is negative on the weekly chart below the resistance at 284.1 SEK