Edenred SE : Close to an important medium term support level
Entry price | Target | Stop-loss | Potential |
---|
€45.08 |
€51 |
€42 |
+13.13% |
---|
The recent downturn has taken Edenred SE shares close to a medium term support level around 43.52 EUR. The timing for a long trade in the stock appears good.
Summary● According to Refinitiv, the company's ESG score for its industry is good.
Strengths● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● The opinion of analysts covering the stock has improved over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses● With a 2021 P/E ratio at 35.64 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company is highly valued given the cash flows generated by its activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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