Grenke AG : A correction would be a logical outcome
| Entry price | Target | Stop-loss | Potential |
|---|
|
€167.4 |
€140 |
€171 |
+16.37% |
|---|
Grenke AG shares could experience selling pressure following the strong increase in its stock price. Over the short term, the stock in fact displays first signs of exhaustion.
Strengths● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 52% by 2019.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
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GRENKE AG 
