Legrand : Back on an important level
BUY
Repli_rebond
Stop-loss triggered
Entry price | Target | Stop-loss | Potential |
---|
€89 |
€99 |
€84 |
+11.24% |
---|
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Legrand, further downside risk now appears limited by close and important technical support levels at 89.68 EUR.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths● The company returns high margins, thereby supporting business profitability.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses● The company's enterprise value to sales, at 3.9 times its current sales, is high.
● The company appears highly valued given the size of its balance sheet.
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