UniCredit SpA
UCG
End-of-day quote Italian Stock Exchange - 05/26
16.59EUR
-1.19%

After the gains, a correction ?

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Ulrich Ebensperger
Financial Analyst

Strategy published on : 05/17/2017 | 10:08

short sell
Live

Entry price : 16.93€
Target : 15.2€
Stop-loss : 17.8€
Potential : 10.22%

Pursuant to the strong advance that shares in UniCredit SpA have seen recently, profit-taking could prompt a correction move.
Strengths

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

● Its low valuation, with P/E ratio at 11.08 and 10.28 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 12.89 EUR


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.

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● 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.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The company is not the most generous with respect to shareholders' compensation.

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

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

● For the past seven days, analysts have been lowering their EPS expectations for the company.

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

Zonebourse.com 2017
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