Elior Group : Back on an important level
Entry price | Target | Stop-loss | Potential |
---|
€20.15 |
€21 |
€19.49 |
+4.24% |
---|
The recent downturn has taken Elior Group shares close to a medium term support level around 19.79 EUR. The timing for a long trade in the stock appears good.
Summary● In a short-term perspective, the company has interesting fundamentals.
Strengths● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● As regards fundamentals, the enterprise value to sales ratio is at 0.86 for the current period. Therefore, the company is undervalued.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 18.89 EUR
Weaknesses● With a 2016 P/E ratio at 25.99 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
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