Reply SpA
End-of-day quote Italian Stock Exchange - 10/16
44.99EUR
+0.54%

Technically solid

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Jordan Dufee
 

Strategy published on : 09/11/2017 | 09:24

long trade
Stop-loss triggered

Entry price : 194.5€
Target : 230€
Stop-loss : 179€
Potential : 18.25%

The underlying tendency is to the upside for shares in Reply SpA and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary

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

● The company has solid fundamentals for a short-term investment strategy.


Strengths

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

● The company is in a robust financial situation considering its net cash and margin position.

● 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.

● Historically, the company has been releasing figures that are above expectations.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 147 EUR


Weaknesses

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

Zonebourse.com 2017
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