Ceconomy AG : Low valued, the stock is testing significant levels
Published january 21, 2013 at 02:32 pm ist
By
Entry price | Target | Stop-loss | Potential |
---|
€23.16 |
€0 |
€21.4 |
-100% |
---|
METRO has a low valuatuation, suggesting a continuation of prices above the significant technical levels being tested.
According to Thomson Reuters consensus from the latest estimates of analysts, the share is trading, on the basis of the current price, 12.64 and 9.35 times the expected results for the current year and the following year. In terms of enterprise value, that is to say the capitalization of the group plus net debt, for a price of 23.16 EUR, the company is worth 0.18 times its sales. Except in case of strong downward revisions of earnings estimates, these low valuation levels theoretically limit the potential fallback.
The potential drop is limited since the crossing of the slant. The extended test of the EUR 23.5 area should give a new buying signal.
Considering these elements, the timing seems appropriate to buy the share. This position will be reduced near the first goal (EUR 25.6) but partially preserved because in case of crossing of this resistance, it would help to set a more ambitious targets.
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