Adidas
ADS
Delayed Frankfurt - 11/17 05:35:24 pm
185.8EUR
+0.6%

Close to an important medium term support level

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Anas Lozach
 

Strategy published on : 11/08/2017 | 09:01

long trade
Stop-loss triggered

Entry price : 184.05€
Target : 195€
Stop-loss : 177.6€
Potential : 5.95%

The recent downward movement has sent Adidas shares back to attractive levels situated around 181.9 EUR. This zone could put an end to the downward movement and offers a good timing for new long positions.
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 close medium term support offers good timing for purchasing the stock.

● 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.

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

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The stock is in a well-established, long-term rising trend above the technical support level at 167.75 EUR


Weaknesses

● With a 2017 P/E ratio at 28.81 times the estimated earnings, the company operates at rather significant levels of earnings multiples.

Zonebourse.com 2017
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