LANXESS AG : Next to a support of a trading range
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€61.91 | €0 | €59.7 | -100% |
The group is still undervalued and the “enterprise value to sales” ratio shows an attractive valuation of 0.74x for the current year.
Following a bullish wave, the stock now shows a slight decline that should be stopped by the mid-term support (EUR 60.45). On this level, remobilization of buyer flows would allow an uptrend in the medium and long term.
In this configuration, we anticipate a reversal movement towards EUR 65.45 at first. Investors could take a buy order next to the EUR 60.45 and get a good entry point with a stop below the medium term support.