VARTA AG

VAR1
Real-time Estimate Quote. Real-time Estimate  - 09/23 03:59:13 pm
115.35EUR -1.41%

Varta AG : The stock forcefully approaches new pivot levels

Jordan Dufee
Analyst

Strategy published on : 09/15/2020 | 02:55

long trade
Stop-loss triggered

Entry price : 127€
Target : 145€
Stop-loss : 115€
Potential : 14.17%

Shares in Varta AG are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Investors have an opportunity to buy the stock and target the € 145.

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.

● 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 several months, analysts have been revising their EPS estimates roughly 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 82.6 EUR


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 127.4.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● With an enterprise value anticipated at 6.15 times the sales for the current fiscal year, the company turns out to be overvalued.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 51.48 times its estimated earnings per share for the ongoing year.

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