Cancom SE : A trend reversal can be anticipated
Entry price | Target | Stop-loss | Potential |
---|
€44.95 |
€47.54 |
€43.54 |
+5.76% |
---|
The timing from a technical point of view appears attractive to go long in shares of Cancom SE and to anticipate a trend reversal.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.64 for the 2016 fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 46.21.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 46.21 EUR
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