Drägerwerk AG & Co. KGaA : Could set up a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
€70.34 |
€0 |
€67.8 |
-100% |
---|
Draegerwerk manufactures medical, safety, and aerospace equipment. The company produces ventilators, monitoring equipment, transport incubators, anesthesia machines, surgical lights, ward equipment, home care equipment, systems for safe breathing in industry, mining and fire fighting, and airplane crew and passenger oxygen systems.
From a fundamental viewpoint, the security is cheap with a PER of 9.78x for 2012 and 8.66x for 2013. Besides, EV/Sales is low with a ratio at 0.59x for this year. This could give to investors a good opportunity.
Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend could reverse upon contact with the EUR 69 area. Draegerwerk should be able to set up a technical rebound in the next trading sessions. This support is a trading opportunity in order to anticipate the recovery towards EUR 75.5 and by extension towards EUR 79.6.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Draegerwerk in a good timing. The potential gain is 7.4 %. Investors might place a stop loss order at EUR 67.8 in order to avoid important losses.
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