STEF ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● 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.
● The company shows low valuation levels, with an enterprise value at 0.52 times its sales.
● With a P/E ratio at 10.98 for the current year and 10.25 for next year, earnings multiples are highly attractive compared with competitors.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at EUR 89.2, which should be gotten rid of so as to gain new appreciation potential.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 88 EUR
