Strategy published on : 08/11/2017 | 09:39
long trade on a pullbackConditional Order Terminated
Entry price : 171.8€
Target : 180€
Stop-loss : 168€
Cancellation Level : 178€
Potential : 4.77%
The medium term support area around 171.85 EUR should allow L'Oréal shares to re-establish an upward trend in the short term.
Investors should buy the stock at current prices near € 171.8 in order to target the € 180.
● The share is getting closer to its long-term support in weekly data, at EUR 173.4, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 171.85 support.
● 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.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 173.4 EUR
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● With an enterprise value anticipated at 3.62 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company benefits from high valuations in earnings multiples.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.