Société Générale : Investors could aim for a turn-around of the trend
Published on 11/17/2020
at 04:36 pm GMT
Share
BUY
Target price hit
Entry price
Target
Stop-loss
Potential
€16.3
€20
€14.5
+22.7%
Société Générale reflects attractive technical aspects that could allow investors to expect a trend reversal over the medium term.
Strengths
● Historically, the company has been releasing figures that are above expectations.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 18.41.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● 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.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the past year, analysts have significantly revised downwards their profit estimates.
● Below the resistance at 18.41 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
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Société Générale is one of the largest French banking groups. Net interest income breaks down by activity as follows:
- financing and investment banking (37.2%): specialized financing (for acquisitions, projects, etc.), activity on the stock, interest rate, currency exchange, and raw material markets, brokerage operations, merger-acquisition consulting, commercial banking activities, etc.;
- retail banking in France (31.8%; SG). The group also develops asset management and private banking activities (EUR 154 billion in assets under management in 2024), and provides insurance services, online banking and online brokerage services (Boursorama Banque) as well as an economic and financial information Website (boursorama.com);
- provision of specialized financial and insurance services (15.8%): consumer loan, leasing, management of car fleets, professional equipment financing and insurance;
- international retail banking (15.2%).
At the end of 2024, Société Générale managed EUR 525 billion in current deposits and EUR 454.6 billion in current credits.
Net interest income is distributed geographically as follows: France (41.5%), Europe (36%), Americas (9.4%), Africa (7.5%) and Asia and Oceania (5.6%).
