Novartis AG : A trend reversal can be anticipated
Entry price | Target | Stop-loss | Potential |
---|
CHF 75.2 |
CHF 80 |
CHF 73.8 |
+6.38% |
---|
Shares in Novartis AG reflect an interesting technical chart pattern allowing for a bet on a reversal of the medium term trend.
Summary● For a short-term investment strategy, the company has poor fundamentals.
Strengths● The share is getting closer to its long-term support in weekly data, at CHF 68.5, which offers good timing for buyers.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● The company is one of the best yield companies with high dividend expectations.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The company's enterprise value to sales, at 3.96 times its current sales, is high.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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