Strategy published on : 09/11/2017 | 08:52
long tradeStop-loss triggered
Entry price : 59.49€
Target : 67€
Stop-loss : 55.3€
Potential : 12.62%
Valeo shares could get back into a rising trend over the medium term, as suggested by technical indicators.
Investors have an opportunity to buy the stock and target the € 67.
● 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.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The group usually releases upbeat results with huge surprise rates.
● As regards fundamentals, the enterprise value to sales ratio is at 0.81 for the current period. Therefore, the company is undervalued.
● With a P/E ratio at 13.68 for the current year and 11.94 for next year, earnings multiples are highly attractive compared with competitors.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts covering the stock have recently lowered their earnings forecast.