Sodexo
SW
Real-time Euronext Paris - 05/25 05:35:03 pm
86.12EUR
+1.29%

Attractive timing with a long term view to go long again

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Jordan Dufee
Analyst

Strategy published on : 02/09/2018 | 09:45

long trade
Stop-loss triggered

Entry price : 98.46€
Target : 104.7€
Stop-loss : 95.5€
Potential : 6.34%

Sodexo shares have returned to important technical levels around 97.8 EUR based on weekly price data. The timing seems attractive to be a buyer of this stock.
Investors have an opportunity to buy the stock and target the € 104.7.

Summary

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


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 97.8 EUR in weekly data.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 97.41 support.

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

● The company shows low valuation levels, with an enterprise value at 0.74 times its sales.

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


Weaknesses

● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

Zonebourse.com 2018
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