Nordex SE : Confirmation of the technical rebound
By Camille Chretien
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€5.65 | €6.25 | €5.45 | +10.62% |
The company, since the beginning of the year, benefit from upward revisions in earning per share and sales estimates. Despite a very high PE/ ratio (50x estimated for 2013), the group has a low valuation (0.31x) in terms of enterprise value to sales. The firm is not indebted and has a net treasury of 29.6 million in 2012.
Technically, after sharply bouncing on the EUR 4.5 area, the security broke out, without any difficulty, the 20 and 100 moving averages. If prices manage to do so with the 50-day moving average and the EUR 5.65 resistance, we may assist to a bullish acceleration towards the bearish trend line, around EUR 6.25.
A long position can be taken in case of breakout of the EUR 5.65 resistance. The main bullish target will be EUR 6.25, then EUR 6.5. A stop loss must be placed below the buying point.