Total
FP
Real-time Euronext Paris - 05/25 05:38:30 pm
51.06EUR
-1.45%

Expectation of a turn-around

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Anas Lozach
Analyst

Strategy published on : 02/08/2018 | 10:10

long trade
Target price hit

Entry price : 45.53€
Target : 49.2€
Stop-loss : 43.8€
Potential : 8.06%

The recent downside mouvement appears to lose momentum which could allow Total shares to regain a positive medium term outlook.
Investors have an opportunity to buy the stock and target the € 49.2.

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

● As regards fundamentals, the enterprise value to sales ratio is at 1 for the current period. Therefore, the company is undervalued.

● With a P/E ratio at 13.1 for the current year and 11.91 for next year, earnings multiples are highly attractive compared with competitors.

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

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The group usually releases earnings worse than estimated.

Zonebourse.com 2018
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