Leoni : An opportune reversal
Entry price | Target | Stop-loss | Potential |
---|
€0 |
€0 |
€52.85 |
+-NaN% |
---|
LEONI could regain its upward trend after having run out of steam.
The group enjoys upward revisions in earnings per share and growth prospects. Indeed, according to the consensus made by Thomson Reuters, sales are expected to grow for the current fiscal year to EUR 4.1 billion (3.9 billion last year). The company seems undervalued as suggested by its P/E ratio at 12.9 times 2014 earnings estimates.
Graphically, buyers influence has been downsized. As the trend in the short term became bearish, profit taking has lead the stock close to an important support level. A rebound on the EUR 54.85 could launch the stock to its recent highs. Well oriented moving averages support this idea.
In consequence, a long position can be taken close to EUR 54.85 to aim EUR 60. A stop loss will be fixed below the entry point to limit risks.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.