Umicore : The beginning of the move
| Entry price | Target | Stop-loss | Potential |
|---|
|
€44.82 |
€48 |
€43.1 |
+7.1% |
|---|
The return of higher trading volumes and volatility could reflect theoretically the starting point of the return of a new upward move for shares in Umicore. The upward movement can be expected to continue.
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at EUR 47.49.
● The group shows a rather high level of debt in proportion to its EBITDA.
● With a 2020 P/E ratio at 38.11 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● 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.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
UMICORE 
