Wendel
MF
Real-time Euronext Paris - 04/21 05:35:26 pm
119.75EUR
-0.5%

Limited upside due to a resistance on the weekly chart

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Jordan Dufee
 

Strategy published on : 04/20/2017 | 09:04

short sell
Live

Entry price : 119.7€
Target : 115.8€
Stop-loss : 121.55€
Potential : 3.26%

Wendel shares are trading close to a major resistance on the weekly chart around 121.55 EUR. A short term correction would be a logical consequence.
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

● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 13% by 2019.

● For several months, analysts have been revising their EPS estimates roughly 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 average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The tendency within the weekly time frame is positive above the technical support level at 104.55 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.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● One of the major weak points of the company is its financial situation.

● 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.

● The group usually releases earnings worse than estimated.

● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.

Zonebourse.com 2017
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