Derichebourg
DBG
Real-time Euronext Paris - 11/23 05:35:23 pm
9.02EUR
+2.15%

The upward trend should continue

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Patrick Rejaunier
Equity Analyst

Strategy published on : 07/14/2017 | 10:26

long trade
Target price hit

Entry price : 7.24€
Target : 8€
Stop-loss : 6.85€
Potential : 10.5%

The recent break-out to the upside has created potential for further gains for shares in Derichebourg.
Summary

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

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


Strengths

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.46 for the 2017 fiscal year.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● The tendency within the weekly time frame is positive above the technical support level at 4.24 EUR


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 7.4.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

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

Zonebourse.com 2017
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