Summary

● 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 GBX 64, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● The stock, which is currently worth 2020 to 0.43 times its sales, is clearly overvalued in comparison with peers.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The company does not generate enough profits, which is an alarming weak point.

● The group usually releases earnings worse than estimated.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the past seven days, analysts have been lowering their EPS expectations for the company.

● For the past year, analysts have significantly revised downwards their profit estimates.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 105.4 GBX