Sodexo : Good timing to go long again
| Entry price | Target | Stop-loss | Potential |
|---|
|
€97.3 |
€101.4 |
€94.3 |
+4.21% |
|---|
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Sodexo, further downside risk now appears limited by close and important technical support levels at 96.74 EUR.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
● The share is getting closer to its long-term support in weekly data, at EUR 96.16, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● 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 company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.7 for the 2019 fiscal year.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 96.16 EUR
● The company sustains low margins.
● Most analysts recommend that the stock should be sold or reduced.
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SODEXO 
