Bolloré SE : Below a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
€4.22 |
€3.95 |
€4.37 |
+6.44% |
---|
Shares in Bolloré are trading close to a major resistance level situated around 4.32 EUR, which limits upside potential and could cause a corrective move to the downside.
Strengths● The stock, which is currently worth 2019 to 0.66 times its sales, is clearly overvalued in comparison with peers.
● The stock is in a well-established, long-term rising trend above the technical support level at 3.83 EUR
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 4.32.
● The stock is close to a major daily resistance at EUR 4.32, which should be gotten rid of so as to gain new appreciation potential.
● The company does not generate enough profits, which is an alarming weak point.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 32.29 times its estimated earnings per share for the ongoing year.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● 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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