SARTORIUS STEDIM BIO

DIM
Real-time Estimate Quote. Real-time Estimate  - 09/24 03:59:59 pm
278.7EUR -2.48%

Sartorius Stedim Biotech : Good timing to anticipate a continuation of the trend

Jordan Dufee
Analyst

Strategy published on : 09/16/2020 | 02:39

long trade
Live

Entry price : 285.8€
Target : 310€
Stop-loss : 270€
Potential : 8.47%

The timing appears opportune to go long in shares of Sartorius Stedim Biotech as we anticipate another pick-up in the underlying trend.
Investors have an opportunity to buy the stock and target the € 310.

Summary

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

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The prospective high growth for the next fiscal years is among the main assets of the company

● The group's high margin levels account for strong profits.

● The company is in a robust financial situation considering its net cash and margin position.

● 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.

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

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 187.9 EUR


Weaknesses

● 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.

● Technically, the stock approaches a strong medium-term resistance at EUR 309.4.

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

● With an expected P/E ratio at 79.21 and 66.21 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.

● Most analysts recommend that the stock should be sold or reduced.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

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