Straumann Holding
STMN
Delayed Swiss Exchange - 12/11 05:30:25 pm
703CHF
-2.23%

No turn-around in sight

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Patrick Rejaunier
Equity Analyst

Strategy published on : 10/10/2017 | 09:00

long trade on a pullback
Conditional Order Terminated

Entry price : 630CHF
Target : 660CHF
Stop-loss : 618CHF
Cancellation Level : 655CHF
Potential : 4.76%

Shares in Straumann Holding show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
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

● 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.

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

● Sales forecast by analysts have been recently revised upwards.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● 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 past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 476.83 CHF


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.

● Technically, the stock approaches a strong medium-term resistance at CHF 660.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 41.4 times its estimated earnings per share for the ongoing year.

● 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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