Repsol YPF
REP
Real-time TRADEGATE AG - 06/18 09:55:03 pm
16.718EUR
-2.58%

Good timing to anticipate the return of volatility

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David Meurisse
Contributor / Partner

Strategy published on : 01/09/2018 | 15:27

long trade
Stop-loss triggered

Entry price : 15.775€
Target : 18.9€
Stop-loss : 14.4€
Potential : 19.81%

After accumulation, acceleration. Timing appears favorable to go long in shares of Repsol YPF and to anticipate an exit of the trading range on the upside.
Investors have an opportunity to buy the stock and target the € 18.9.

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 stock, which is currently worth 2017 to 0.73 times its sales, is clearly overvalued in comparison with peers.

● Its low valuation, with P/E ratio at 11.44 and 11.4 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

● The company is one of the best yield companies with high dividend expectations.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 14.55 EUR


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at EUR 15.92.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company's earnings releases usually do not meet expectations.

Zonebourse.com 2018
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