Faurecia
EO
Real-time Euronext Paris - 11/23 05:35:25 pm
61.97EUR
+0.31%

The technical configuration is positive

Envoyer par e-mail
Jordan Dufee
 

Strategy published on : 09/12/2017 | 09:27

long trade
Target price hit

Entry price : 52.3€
Target : 56.3€
Stop-loss : 49.2€
Potential : 7.65%

Shares in Faurecia show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
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 stock, which is currently worth 2017 to 0.36 times its sales, is clearly overvalued in comparison with peers.

● Its low valuation, with P/E ratio at 12 and 10.76 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 40 EUR


Weaknesses

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

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

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

Zonebourse.com 2017
Envoyer par e-mail