Expect the comeback of a strong trend
Strategy published on : 08/08/2017 | 09:56
Entry price : 20.91€
Target : 24.2€
Stop-loss : 19.5€
Potential : 15.73%
● 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 group's activity appears highly profitable thanks to its outperforming net margins.
● The company is in a robust financial situation considering its net cash and margin position.
● The group usually releases upbeat results with huge surprise rates.
● As regards fundamentals, the enterprise value to sales ratio is at 1.03 for the current period. Therefore, the company is undervalued.
● Its low valuation, with P/E ratio at 6.74 and 6.3 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Stock prices approach a strong long-term resistance in weekly data at EUR 22.2.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.