Ubisoft Entertainmen
UBI
Real-time Euronext Paris - 08/22 05:35:03 pm
55.75EUR
+1.51%

Close to new upside potential

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Jordan Dufee
 

Strategy published on : 04/21/2017 | 09:21

long trade under condition
Target price hit

Entry price : 41.5€
Target : 47€
Stop-loss : 38.3€
Cancellation Level : 38€
Potential : 13.25%

Ubisoft Entertainment shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Summary

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


Strengths

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

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● The group usually releases upbeat results with huge surprise rates.

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

● The tendency within the weekly time frame is positive above the technical support level at 35.18 EUR


Weaknesses

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 36.48 times its estimated earnings per share for the ongoing year.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the past year, analysts have significantly revised downwards their profit estimates.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

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