Merck KGaA : There is still some upside potential
Entry price | Target | Stop-loss | Potential |
---|
€89.98 |
€103 |
€88 |
+14.47% |
---|
Merck KGaA shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary● The company usually posts poor financials for mid or long term investments.
● The company has poor fundamentals for a short-term investment strategy.
Strengths● The group's activity appears highly profitable thanks to its outperforming net margins.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● The stock is in a well-established, long-term rising trend above the technical support level at 86.26 EUR
Weaknesses● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● 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 earnings releases usually do not meet expectations.
● With an enterprise value anticipated at 3.17 times the sales for the current fiscal year, the company turns out to be overvalued.
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