Lear Corporation : Expectation of a turn-around
Entry price | Target | Stop-loss | Potential |
---|
US$149.07 |
US$170 |
US$138.5 |
+14.04% |
---|
Shares in Lear Corporation reflect an interesting technical chart pattern allowing for a bet on a reversal of the medium term trend.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths● The share is getting closer to its long-term support in weekly data, at USD 142.06, which offers good timing for buyers.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
● The company shows low valuation levels, with an enterprise value at 0.44 times its sales.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses● The underlying tendency is negative on the weekly chart below the resistance at 173.31 USD
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