Nemetschek SE
NEM
Delayed Frankfurt - 06/15 05:35:13 pm
105.1EUR
-2.95%

The underlying trend is to the upside

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 06/13/2018 | 09:42

long trade
Live

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.

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

● 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


Weaknesses

● 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.

Zonebourse.com 2018
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