Mercedes-Benz Group AG : Could exceed the bullish trend line
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€54 | €57.7 | €52.15 | +6.85% |
Basically, Surperformance rating system highlights relatively low valuation levels compared to the sector with a "enterprise value/sales" ratio of 0.57x and a P/E ratio of 10.6x expected for this year. The group's financial position is healthy, which gives it a certain safety margin.
Technically, the title shows a flawless performance since the beginning of the year, but the upside potential is not yet exhausted. Prices move under a bullish trend line for 1 year and we believe, from now on, a potential crossing of this psychological threshold.
It will be possible to buy Daimler over EUR 54 and hope to rally the resistance of EUR 57.7, level reached in 2011. A stop loss should, nevertheless, be placed under the entry point to cover from a possible return to the support.