ICA Gruppen : The technical configuration is positive
Entry price | Target | Stop-loss | Potential |
---|
SEK 422 |
SEK 460 |
SEK 399 |
+9% |
---|
The timing appears opportune to go long in shares of ICA Gruppen as we anticipate another pick-up in the underlying trend.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths● The share is getting closer to its long-term support in weekly data, at SEK 399.2, which offers good timing for buyers.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● The tendency within the weekly time frame is positive above the technical support level at 399.2 SEK
Weaknesses● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company does not generate enough profits, which is an alarming weak point.
● Most analysts recommend that the stock should be sold or reduced.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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