Sika AG : No turn-around in sight
Entry price | Target | Stop-loss | Potential |
---|
CHF 131.9 |
CHF 143 |
CHF 127 |
+8.42% |
---|
Shares in Sika AG show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths● The group's high margin levels account for strong profits.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
● Analysts covering this company mostly recommend stock overweighting or purchase.
Weaknesses● With a 2018 P/E ratio at 26.34 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
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