Munich Re : The medium term resistance level limits the upside potential
Entry price | Target | Stop-loss | Potential |
---|
€188.85 |
€180 |
€197.3 |
+4.69% |
---|
Muenchener Rueckversicherung shares trade close to a major resistance zone that is situated around 176.15 EUR. This zone should be difficult to break through, which in turn suggests a corrective move ahead.
Summary● The company usually posts poor financials for mid or long term investments.
● For a short-term investment strategy, the company has poor fundamentals.
Strengths● The company's attractive earnings multiples are brought to light by a P/E ratio at 11.89 for the current year.
● This company will be of major interest to investors in search of a high dividend stock.
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 195.4.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The group usually releases earnings worse than estimated.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
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