Direct Energie
DIREN
Real-time Euronext Paris - 06/23 12:22:13 pm
52.8EUR
+3.13%

One could take advantage of the market's hesitation

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David Meurisse
Contributor / Partner

Strategy published on : 03/17/2017 | 12:00

long trade
Target price hit

Entry price : 32.58€
Target : 36.3€
Stop-loss : 30.9€
Potential : 11.42%

Shares in Direct Energie currently show the technical configuration of a trading range. The recently observed decline yields a good timing for new long positions close to the support level.
Summary

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


Strengths

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 31.53 support.

● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 31% by 2019.

● The company shows low valuation levels, with an enterprise value at 0.68 times its sales.

● With a P/E ratio at 13.1 for the current year and 10.83 for next year, earnings multiples are highly attractive compared with competitors.

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

● Analysts covering this company mostly recommend stock overweighting or purchase.

● 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 28.68 EUR


Weaknesses

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

Zonebourse.com 2017
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