Constellium SE : Rumors began swirling the company could be bought out
Entry price | Target | Stop-loss | Potential |
---|
US$10.05 |
US$13.9 |
US$8.7 |
+38.31% |
---|
A strong break-out to the upside has recently been seen in Constellium. The current technical chart pattern could allow for a continuation of the upward dynamic.
Strengths● The stock, which is currently worth 2017 to 0.57 times its sales, is clearly overvalued in comparison with peers.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● The stock is in a well-established, long-term rising trend above the technical support level at 7.15 USD
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at USD 10.52.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The group usually releases earnings worse than estimated.
● For the past year, analysts have significantly revised downwards their profit estimates.
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