Europcar Mobility Group S.A. : Helped by a technical support level
Entry price | Target | Stop-loss | Potential |
---|
€7.26 |
€7.6 |
€6.79 |
+4.68% |
---|
The selling pressure regarding Europcar Groupe SA shares could subside shortly. In fact, the support area that is currently being tested around 6.88 EUR has come into play and could, at least in the short term, keep the downside pressure at bay.
Strengths● The close medium term support offers good timing for purchasing the stock.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.66 for the 2016 fiscal year.
● Its low valuation, with P/E ratio at 8.88 and 7.69 for the ongoing fiscal year and 2017 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Technically, the stock is driven to an oversold area. The RSI indicator confirms this situation validating the strength of sellers pressure.
Weaknesses● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● 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.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 9.5 EUR
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