Brenntag
BNR
Delayed Frankfurt - 11/17 05:35:59 pm
52.5EUR
-0.72%

A long term support level to be taken advantage of

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 09/13/2017 | 09:00

long trade
Target price hit

Entry price : 44.75€
Target : 46.62€
Stop-loss : 43.93€
Potential : 4.18%

The decline over the past weeks has brought the price of Brenntag shares back to an important technical support level at 43.93 EUR. This represents an opportunity to take advantage of these prices levels.
Summary

● The company has solid fundamentals for a short-term investment strategy.


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 43.93 EUR in weekly data.

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

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● The stock, which is currently worth 2017 to 0.74 times its sales, is clearly overvalued in comparison with peers.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● For the last few months, analysts have been revising downwards their earnings forecast.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 49.5 EUR

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