Lonza Group AG : Technically solid
Entry price | Target | Stop-loss | Potential |
---|
CHF 245.8 |
CHF 290 |
CHF 219.8 |
+17.98% |
---|
Lonza Group's shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Historically, the company has been releasing figures that are above expectations.
● 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.
Weaknesses● The stock is close to a major daily resistance at CHF 246.9, which should be gotten rid of so as to gain new appreciation potential.
● The company is in debt and has limited leeway for investment
● The company's enterprise value to sales, at 3.65 times its current sales, is high.
● The firm trades with high earnings multiples: 26.1 times its 2018 earnings per share.
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