Colruyt
COLR
Delayed Euronext Brussels - 05/24 05:15:02 pm
48.065EUR
+0.01%

Is the distribution phase coming to an end ?

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Patrick Rejaunier
Equity Analyst

Strategy published on : 03/15/2017 | 09:16

long trade
Stop-loss triggered

Entry price : 45.425€
Target : 47.6€
Stop-loss : 44.27€
Potential : 4.79%

Colruyt shares are locked into a trading range. This phase will eventually have to end with a return of a clear trend.
Summary

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

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 44.7, which offers good timing for buyers.

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

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● The company shows low valuation levels, with an enterprise value at 0.69 times its sales.


Weaknesses

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

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

● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 49.16 EUR

Zonebourse.com 2017
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