VARTA AG

VAR1
Real-time Estimate Quote. Real-time Estimate  - 03/08 06:34:19 am
107.1EUR +0.94%

Varta AG : Good timing to anticipate a continuation of the trend

02/22/2021 | 05:48am
Nicolas Chéron
Market Strategist

Strategy published on : 02/22/2021 | 05:48

long trade on a pullback
Live

Entry price : 109€
Target : 135€
Stop-loss : 103€
Cancellation Level : 132€
Potential : 23.85%

The underlying tendency is to the upside for shares in Varta AG and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Investors should buy the stock at current prices near € 109 in order to target the € 135.

Summary

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


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The company returns high margins, thereby supporting business profitability.

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

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● The stock is in a well-established, long-term rising trend above the technical support level at 94.85 EUR


Weaknesses

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The company's enterprise value to sales, at 6.3 times its current sales, is high.

● The company benefits from high valuations in earnings multiples.

● 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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