Deutsche Wohnen SE : Close to a key resistance level
BUY
Conditionne
Stop-loss triggered
Entry price | Target | Stop-loss | Potential |
---|
€36 |
€38 |
€35.23 |
+5.56% |
---|
Deutsche Wohnen shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The tendency within the weekly time frame is positive above the technical support level at 31.37 EUR
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 35.81, which should be gotten rid of so as to gain new appreciation potential.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's "enterprise value to sales" ratio is among the highest in the world.
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