Lagardère S.A. : Short-term turn-around to the downside ahead
| Entry price | Target | Stop-loss | Potential |
|---|
|
€22.43 |
€21 |
€23.4 |
+6.35% |
|---|
Shares in Lagard?re have recently experienced substantial gains. This suggests that the timing is opportune to lock in gains prior to a likely technical correction.
Strengths● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.6 for the 2016 fiscal year.
● The company is one of the best yield companies with high dividend expectations.
● Stock prices approach a strong long-term resistance in weekly data at EUR 23.33.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The underlying tendency is negative on the weekly chart below the resistance at 23.33 EUR
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LAGARDÈRE S.A. 
