E.ON
EOAN
Delayed Frankfurt - 06/19 05:35:24 pm
9.245EUR
-0.54%

The scenario of a decline is the one to priviledge

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 01/10/2018 | 09:20

short sell
Target price hit

Entry price : 8.999€
Target : 8.26€
Stop-loss : 9.46€
Potential : 8.21%

The expected downward movement seems to settle in accompanied by substantial trading volume. This acceleration represents the first sign of a powerful underlying trend.
Investors should open a short trade and target the € 8.26.

Strengths

● The share is getting closer to its long-term support in weekly data, at EUR 8.57, which offers good timing for buyers.

● As regards fundamentals, the enterprise value to sales ratio is at 1.06 for the current period. Therefore, the company is undervalued.

● Its low valuation, with P/E ratio at 5.2 and 13.21 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.

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

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 8.57 EUR


Weaknesses

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● The company is in debt and has limited leeway for investment

● 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 company's earnings releases usually do not meet expectations.

Zonebourse.com 2018
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