Air France-KLM : The upward trend is showing signs of weakness
Entry price | Target | Stop-loss | Potential |
---|
€10.1 |
€9.3 |
€10.95 |
+7.88% |
---|
Air France-KLM's shares show signs of a reversal to the downside. The technical chart pattern has deteriorated and suggests a continuation of the decline.
Strengths● The company shows low valuation levels, with an enterprise value at 0.42 times its sales.
● Its low valuation, with P/E ratio at 8.78 and 6.75 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● Low profitability weakens the company.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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