COMPAGNIE FINANCIERE RICHEMONT : There is still some upside potential
Entry price | Target | Stop-loss | Potential |
---|
CHF 82.64 |
CHF 92.56 |
CHF 77.5 |
+12% |
---|
The underlying tendency is to the upside for shares in Compagnie Financière Richemont and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at CHF 87.78.
● The company benefits from high valuations in earnings multiples.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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