Edenred SE : The stock is approaching a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
€47.66 |
€53 |
€44.1 |
+11.2% |
---|
Edenred shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
● The tendency within the weekly time frame is positive above the technical support level at 41.75 EUR
Weaknesses● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With a 2021 P/E ratio at 37.17 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● Revenue estimates are regularly revised downwards for the current and coming years.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.