Derichebourg
DBG
Real-time Euronext Paris - 06/20 09:51:50 am
5.58EUR
-0.98%

A medium term support level to take advantage of

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Anas Lozach
Analyst

Strategy published on : 03/06/2018 | 08:46

long trade
Stop-loss triggered

Entry price : 7.415€
Target : 9€
Stop-loss : 6.4€
Potential : 21.38%

The support at 7.17 EUR, which is currently being tested, should allow Derichebourg shares to move back to the upside.
Investors have an opportunity to buy the stock and target the € 9.

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 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 6.38 EUR in weekly data.

● The close medium term support offers good timing for purchasing the stock.

● 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 2018 to 0.39 times its sales, is clearly overvalued in comparison with peers.

● With a P/E ratio at 13.14 for the current year and 11.85 for next year, earnings multiples are highly attractive compared with competitors.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the past twelve months, EPS forecast has been revised upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 6.38 EUR

Zonebourse.com 2018
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