 |
Gallien Girardot |
Junior Analyst |
Strategy published on : 06/30/2020 | 05:19
long trade under condition
Conditional Order Terminated
Entry price : 22.6€
Target : 26.1€
Stop-loss : 20.8€
Cancellation Level : 18€
Potential : 15.49%
Shares in SII have recently benefitted from a regain of interest by market participants. The technical chart pattern suggests a continuation of the upward movement.
Investors should benefit from the breakout of the € 22.6 level to target the € 26.1.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.53 for the 2020 fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● For the last few months, analysts have been revising downwards their earnings forecast.
● 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.