Strategy published on : 07/09/2018 | 15:35
Entry price : 92.75$
Target : 105$
Stop-loss : 83.2$
Potential : 13.21%
Technically, timing appears good within a medium term time horizon to buy shares in Weibo Corp (ADR). The technical support area at 88.76 USD effectively limits downside risk and should allow the stock to get back into an upward dynamic.
Investors have an opportunity to buy the stock and target the $ 105.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 88.76 USD in weekly data.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 34.83 and 23.47 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● Below the resistance at 109.68 USD, the stock shows a negative configuration when looking looking at the weekly chart.