Telecom Italia S.p.A. : Is the distribution phase coming to an end ?
Entry price | Target | Stop-loss | Potential |
---|
€0.41 |
€0.47 |
€0.36 |
+13.99% |
---|
After accumulation, acceleration. Timing appears favorable to go long in shares of Telecom Italia S.p.A. and to anticipate an exit of the trading range on the upside.
Summary● The company usually posts poor financials for mid or long term investments.
Strengths● Its low valuation, with P/E ratio at 7.42 and 8.74 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The tendency within the weekly time frame is positive above the technical support level at 0.34 EUR
Weaknesses● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● One of the major weak points of the company is its financial situation.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
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