Acciona, S.A. : The area of 57.36 EUR might facilitate a technical rebound.
January 23, 2012 at 08:45 pm IST
By
Share
BUY
Entry price
Target
Stop-loss
Potential
€61.03
€0
€55
-100%
Listed on Madrid Stock exchange, Acciona is a global developer and service provider of solutions in renewable energy, large civil infrastructures and water treatment and reverse osmosis desalination. The company has sustainable development at the heart of its strategy.
The support of 57.36 EUR is being tested which should allow Acciona SA to meet again the bullish trend.
Technically, the company has a negative configuration on the short term and under the resistance area of 64.9 EUR as identified by downward trend of moving average 20-days, at the moment situated at 64.6 EUR. However, after had fallen about 3% in the past sessions, the share is in oversold situation. In daily chart, the stock is close to an important technical support placed at 60.9 EUR. This level might stop bearish trend in the short term.
From a fundamental viewpoint, the security is weak valued with price earnings ratio of 10.69 for this year, and for next year is estimated to 19.01. In addition it has also a weak enterprise value to sales ratio at 1.64 for this year.
The technical pattern and strong Acciona's fundamentals is a good opportunity for active investors to buy above of 60.9 EUR. The potential drop is limited and the timing seems ideal to benefit of technical rebound. The first target price is 64.9 EUR, and then to aim at 72.3 EUR. However, we shouldn't continue this strategy under 57.4 EUR, in fact the downwards trend could restart.
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Acciona, S.A. is a building and public works group organized around five areas of activity:
- design, construction and maintenance of infrastructures and buildings: roads, highways, tunnels, railroads, hydraulic facilities, wastewater processing plants, parking lots, hospitals, residences, etc.;
- energy services: production of electricity (wind, water, solar, and biomass), engineering and construction of wind power plants, production of aero-generators and bio-diesel fuel;
- water environmental services: design, construction and management of desalination units, distribution of potable water, wastewater treatment, etc.;
- services: cleaning services (streets, hospitals, etc.), airport handling services, collection and processing of wastes, logistics services, etc.;
- other: fund management, securities brokerage services, wine production, etc.
ACCIONA, S.A. 
