The EUR 16 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, Gildemeister is undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.38 times its revenues.
This valuation is only 11.47 and 10.54 times the two next years earnings.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the EUR 16 area should stop this trend and allow a technical rebound towards EUR 17.05. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

The trading strategy can benefit from the proximity of the strong support and the trend line currently tested in order to buy Gildemeister in a good timing. The potential gain is 5.3%. Investors might place a stop loss order at EUR 15.8 in order to avoid important losses.