 |
Eduardo Yusseppe Quiñonez Diaz |
Junior Analyst |
Strategy published on : 02/22/2021 | 03:01
long trade
Stop-loss triggered
Entry price : 20.6€
Target : 30.94€
Stop-loss : 18.1€
Potential : 50.19%
Shares in Solaria Energia y Medio Ambiente show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Investors have an opportunity to buy the stock and target the € 30.94.
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 close medium term support offers good timing for purchasing the stock.
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● For the past twelve months, EPS forecast has been revised upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 13.26 EUR
Weaknesses● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● Based on current prices, the company has particularly high valuation levels.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 97.23 times its estimated earnings per share for the ongoing year.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.