Valeo : Increase of volatility
| Entry price | Target | Stop-loss | Potential |
|---|
|
€31.18 |
€34.2 |
€28.6 |
+9.69% |
|---|
Valeo shares have been in strong demand lately. The technical chart pattern looks positive which may give rise to new gains.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.57 for the 2021 fiscal year.
● The stock is in a well-established, long-term rising trend above the technical support level at 21.74 EUR
● Stock prices approach a strong long-term resistance in weekly data at EUR 33.52.
● The company sustains low margins.
● 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.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
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VALEO 
