||The editorial team
Strategy published on : 02/23/2021 | 02:43
long trade under conditionLive
Entry price : 40€
Target : 44€
Stop-loss : 38€
Cancellation Level : 36.48€
Potential : 10%
NEXITY shares are trading close to a resistance zone which currently limits any upside potential. We expect that this level will be broken due to the stock's technical chart pattern.
Investors should benefit from the breakout of the € 40 level to target the € 44.
● The company has solid fundamentals for a short-term investment strategy.
● 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.
● The group usually releases upbeat results with huge surprise rates.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.8 for the 2020 fiscal year.
● The company is one of the best yield companies with high dividend expectations.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 30.79 EUR
● Stock prices approach a strong long-term resistance in weekly data at EUR 38.74.
● Technically, the stock approaches a strong medium-term resistance at EUR 39.3.
● The company sustains low margins.
● The group shows a rather high level of debt in proportion to its EBITDA.
● For the past year, analysts have significantly revised downwards their profit estimates.