An opportunity over the medium term?
|Index and derivatives Analyst|
Strategy published on : 03/20/2017 | 08:47
Entry price : 7.785€
Target : 8.3€
Stop-loss : 7.18€
Potential : 6.62%
● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
● 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 7.18 EUR in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 7.45 support.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Its low valuation, with P/E ratio at 8.7 and 10.62 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The group shows a rather high level of debt in proportion to its EBITDA.
● 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.
● The group usually releases earnings worse than estimated.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.
● Below the resistance at 9.53 EUR, the stock shows a negative configuration when looking looking at the weekly chart.