Dassault Systèmes
DSY
Real-time Euronext Paris - 08/18 05:35:00 pm
82.76EUR
-1.03%

Towards the breakout of a major resistance level

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Jordan Dufee
 

Strategy published on : 08/09/2017 | 09:42

long trade under condition
On stand-by

Entry price : 85€
Target : 92€
Stop-loss : 83€
Cancellation Level : 80€
Potential : 8.24%

Dassault Systèmes shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential.
Summary

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


Strengths

● The group's activity appears highly profitable thanks to its outperforming net margins.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 77.94 EUR


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 84.14.

● Technically, the stock approaches a strong medium-term resistance at EUR 84.65.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 39.26 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.

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