Michelin (CGDE) : The underlying trend is in force again
BUY
Repli_rebond
Stop-loss triggered
Entry price | Target | Stop-loss | Potential |
---|
€108 |
€117 |
€105.85 |
+8.33% |
---|
Michelin shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
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.
● Historically, the company has been releasing figures that are above expectations.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● With a P/E ratio at 11.74 for the current year and 10.2 for next year, earnings multiples are highly attractive compared with competitors.
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● For the last few months, analysts have been revising downwards their earnings forecast.
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