Bayer AG : The medium term resistance level limits the upside potential
Entry price | Target | Stop-loss | Potential |
---|
€70.49 |
€65 |
€73.5 |
+7.79% |
---|
Current price levels represent good timing for the opening of new short positions with respect to shares in Bayer AG. The resistance zone around 71.71 EUR could effectively set off a correction phase over the short term.
Strengths● 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 71.43.
● Technically, the stock approaches a strong medium-term resistance at EUR 71.71.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● Revenue estimates are regularly revised downwards for the current and coming years.
● 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.
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