Michelin (CGDE) : A medium term support level to take advantage of
Entry price | Target | Stop-loss | Potential |
---|
€30.73 |
€32.6 |
€29.5 |
+6.09% |
---|
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Michelin (CGDE), further downside risk now appears limited by close and important technical support levels at 29.81 EUR.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths● With a P/E ratio at 10.56 for the current year and 9.38 for next year, earnings multiples are highly attractive compared with competitors.
● With regards to fundamentals, the enterprise value to sales ratio is at 0.87 for the current period. Therefore, the company is undervalued.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● The company is one of the best yield companies with high dividend expectations.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
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