Snam S.p.A. : A resistance level that suggests downside risk
Entry price | Target | Stop-loss | Potential |
---|
€3.89 |
€3.6 |
€4.1 |
+7.5% |
---|
Shares in Snam SpA are trading close to a major resistance level situated around 4.1 EUR, which limits upside potential and could cause a corrective move to the downside.
Summary● The company usually posts poor financials for mid or long term investments.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
● This company will be of major interest to investors in search of a high dividend stock.
Weaknesses● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● One of the major weak points of the company is its financial situation.
● Based on current prices, the company has particularly high valuation levels.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The underlying tendency is negative on the weekly chart below the resistance at 3.96 EUR
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