Pernod Ricard
RI
Real-time Euronext Paris - 06/18 05:38:08 pm
144.4EUR
-1.94%

Helped by a technical support level

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Jordan Dufee
Analyst

Strategy published on : 07/13/2017 | 09:33

long trade
Stop-loss triggered

Entry price : 116.75€
Target : 121€
Stop-loss : 114.5€
Potential : 3.64%

Pernod Ricard shares are closing back in on major support levels around 114.75 EUR based on daily price data, which could offer attractive entry points.
Investors have an opportunity to buy the stock and target the € 121.

Strengths

● The close medium term support offers good timing for purchasing the stock.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● 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.

● The tendency within the weekly time frame is positive above the technical support level at 110 EUR


Weaknesses

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● One of the major weak points of the company is its financial situation.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● With an enterprise value anticipated at 4.33 times the sales for the current fiscal year, the company turns out to be overvalued.

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