EssilorLuxottica : Helped by a technical support level
Entry price | Target | Stop-loss | Potential |
---|
€179.58 |
€193.36 |
€167 |
+7.67% |
---|
The support at 173.72 EUR, which is currently being tested, should allow EssilorLuxottica shares to move back to the upside.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths● The company's profit outlook over the next few years is a strong asset.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
Weaknesses● With an expected P/E ratio at 39.99 and 33.43 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company's enterprise value to sales, at 4.46 times its current sales, is high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
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