Valeo : Good timing to anticipate taking profits
Entry price | Target | Stop-loss | Potential |
---|
€19.15 |
€18 |
€20.1 |
+5.98% |
---|
The recently observed upswing has shown some signs of exhaustion, which makes for good timing to employ a short strategy with a short term perspective.
Summary● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths● The company's profit outlook over the next few years is a strong asset.
● The company shows low valuation levels, with an enterprise value at 0.41 times its sales.
Weaknesses● The company sustains low margins.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
● 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 price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
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