Enel S.p.A. : Watch out the exit from bearish channel
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€2.62 | €3.12 | €0 | +19.08% |
From a fundamental viewpoint, the enterprise value is 0.91 times its sales according to Thomson Reuters and the company is undervalued compared to its peers. Even if analysts have not revised upward their estimates, they forecast an EPS of EUR 0.37 EUR. The weak point is the situation of debt, the leverage is estimated at 2.72x.
Technically the share is bullish trend on the short term. Moving averages are well oriented, especially the 20 day moving average. In weekly data the stock is trading in bearish channel, and is testing the upper band of this channel. The break out of this level could give a good point of entry and open new scenarios. We suggest a long position at EUR 2.70, in this case we forecast a return on EUR 3.12 level filling the bearish gap.