Ceconomy AG : Low valued, the stock is testing significant levels
Published on 01/21/2013
at 02:32 pm IST
Share
BUY
Live
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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Ceconomy AG is a Germany-based company primarily engaged in consumer electronics retail. The Company operates several brands, including MediaMarkt, Saturn, RMG, Deutsche Technikberatung, and JUKE. The MediaMarkt and Saturn brand names operate retail chains selling television sets, personal computers and tablets, smartphones, consoles, computer games, music players, household appliances, small kitchen appliances, outdoor equipment, drones, and navigation devices. The Retail Media Group (RMG) develops customized online advertising campaigns based on anonymous visitors and purchasing data. Deutsche Technikberatung provides professional assistance with installing, connecting, and troubleshooting electronic devices. It’s JUKE! brand name operates a digital platform that publishes songs, films, games, and e-books.
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Investor
Investor
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Global
Global
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Quality
Quality
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ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
