Sodexo : The underlying trend is to the upside
Entry price | Target | Stop-loss | Potential |
---|
€100.35 |
€105.8 |
€97.7 |
+5.43% |
---|
The timing appears opportune to go long in shares of Sodexo as we anticipate another pick-up in the underlying trend.
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● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 95.46 EUR
Weaknesses● The company sustains low margins.
● Most analysts recommend that the stock should be sold or reduced.
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