Strategy published on : 07/17/2017 | 09:10
long tradeStop-loss triggered
Entry price : 122.95€
Target : 135€
Stop-loss : 118€
Potential : 9.8%
Michelin shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Investors have an opportunity to buy the stock and target the € 135.
● 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.
● The company returns high margins, thereby supporting business profitability.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● As regards fundamentals, the enterprise value to sales ratio is at 1.02 for the current period. Therefore, the company is undervalued.
● With a P/E ratio at 13.19 for the current year and 11.7 for next year, earnings multiples are highly attractive compared with competitors.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● The stock is in a well-established, long-term rising trend above the technical support level at 106.15 EUR