HOCHTIEF AG ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The stock, which is currently worth 2017 to 0.42 times its sales, is clearly overvalued in comparison with peers.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● 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.
● The stock is in a well-established, long-term rising trend above the technical support level at 138.3 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.
● Technically, the stock approaches a strong medium-term resistance at EUR 172.2.
● The company's earnings releases usually do not meet expectations.
● With a 2017 P/E ratio at 24.89 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● Most analysts recommend that the stock should be sold or reduced.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
