Strategy published on : 09/12/2017 | 09:27
long tradeTarget 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.
Investors have an opportunity to buy the stock and target the € 56.3.
● 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.
● 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
● 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.