Munich Re : Anticipation of a technical correction
Entry price | Target | Stop-loss | Potential |
---|
€209.2 |
€200 |
€215 |
+4.4% |
---|
The chart of shares in Muenchener Rueckversicherung suggests a correction over the short term. The timing to benefit from a likely reversal appears good.
Summary● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
Strengths● With a P/E ratio at 11.43 for the current year and 10.41 for next year, earnings multiples are highly attractive compared with competitors.
● This company will be of major interest to investors in search of a high dividend stock.
● The tendency within the weekly time frame is positive above the technical support level at 195.8 EUR
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 216.6.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company's earnings releases usually do not meet expectations.
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