MGI Coutier
MGIC
Real-time Euronext Paris - 05/25 05:35:09 pm
28.15EUR
-1.92%

Close to a support level

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Jordan Dufee
Analyst

Strategy published on : 02/13/2018 | 09:39

long trade
Stop-loss triggered

Entry price : 31€
Target : 36.6€
Stop-loss : 28.5€
Potential : 18.06%

After having been stuck in a trading range, shares in MGI Coutier are returning to the lower bound of the range phase. This appears to be a good opportunity for opening new positions.
Investors have an opportunity to buy the stock and target the € 36.6.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 30.91 EUR in weekly data.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● The company returns high margins, thereby supporting business profitability.

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● As regards fundamentals, the enterprise value to sales ratio is at 0.8 for the current period. Therefore, the company is undervalued.

● Its low valuation, with P/E ratio at 9.36 and 8.91 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

● 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.


Weaknesses

● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.

● Analysts covering the stock have recently lowered their earnings forecast.

Zonebourse.com 2018
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