KWS SAAT SE & Co. KGaA : End of the consolidation phase
Entry price | Target | Stop-loss | Potential |
---|
€274 |
€0 |
€259.6 |
-100% |
---|
After the release, on 26 February, of disappointing results for the first quarter of 2013 (EPS of -4.79 against -2.79 estimated), KWS SAAT' stock began a consolidation phase, catching its breath in its ascension.
Nonetheless, the company's fundamentals remain intact and argue in favor of a continuation of the bullish trend. Indeed, sales are expected to increase by 15.7% in 2013 with a steady net margin for the coming years. Analysts from the Thomson Reuters consensus are still revising upwards their EPS estimates, which bodes well for the share.
Technically, despite an uptrend in the medium and long term, prices has known a consolidation phase and are now back to an opportune entry point. The proximity of the 271.6 EUR short term support, corresponding to a bullish trend line and to the 100-day moving average, let us think the stock will resume its original trend, towards the EUR 297.1 resistance.
As a consequence, most active investors could take a long position at the current price. The objective will be a comeback to the 297.1 resistance. Once this level crossed, prices may reach new annual highs. However, a stop loss must be fixed below the EUR 271.6.
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