Bic
BB
Real-time Euronext Paris - 05/24 05:35:01 pm
108.9EUR
+0.69%

A good level to buy

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Sébastien Gatel
Equity Analyst

Strategy published on : 03/15/2017 | 08:38

long trade
Target price hit

Entry price : 115.75€
Target : 118.6€
Stop-loss : 114.2€
Potential : 2.46%

Bic shares are closing back in on major support levels around 114.95 EUR based on daily price data, which could offer attractive entry points.
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 current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 114.95 EUR in weekly data.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● 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.

● The company is one of the best yield companies with high dividend expectations.

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


Weaknesses

● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.

● Below the resistance at 122.9 EUR, the stock shows a negative configuration when looking looking at the weekly chart.

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