The CHF 58.2 support, currently tested, should allow DKSH Holding (engages in the consumer goods, healthcare, performance materials and technology services) to rally again after a decrease of 8% during the week.
From a fundamental viewpoint, DKSH Holding seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.35 times its revenues.
Technically, the security is in a negative configuration in the mid-term as the bearish trend of different moving averages shows. Nevertheless, the stock seems in an oversold situation, near to its CHF 59.9 support in daily data. This level might stop the bearish trend in the short term.
Thanks to the technical pattern, active investors can open long positions above CHF 59.9. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The main goal will be fixed at CHF 63.4. However, a bearish trend would regain the upper hand if the security breakdown this support.
DKSH Holding AG is a Switzerland-based company that provides market expansion services. The Companyâs business activities are divided into four business units: Consumer Goods, Healthcare, Performance Materials, and Technology. The Consumer Goods business unit focuses on fast moving consumer goods, food services, luxury and lifestyle products in Asia. The Healthcare business unit provides market expansion services for healthcare companies seeking to grow their business in Asia. The Performance Materials business unit offers instant access to raw materials around the world, serving the chemical, pharmaceutical, food, beverage and personal care industries. The Technology business unit offers its customers a range of technologies from European, American and Asian manufacturers with a focus on advanced machinery for industry and construction, analytical and scientific instruments, components and consumables. The Company is the parent company of DKSH Group and operates numerous subsidiaries.