Strategy published on : 06/13/2018 | 09:42
Entry price : 107.7€
Target : 116€
Stop-loss : 99€
Potential : 7.71%
Shares in Nemetschek SE do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend.
Investors have an opportunity to buy the stock and target the € 116.
● 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.
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 49% by 2020.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● The stock is in a well-established, long-term rising trend above the technical support level at 83.5 EUR
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at EUR 110.7, which should be gotten rid of so as to gain new appreciation potential.
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 57.22 and 49.18 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.