LANXESS AG : Chemicals new generation are popular !
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€57.24 | €62 | €54.8 | +8.32% |
With an expected turnover to 8.6 billion euros for fiscal year 2011 against 7.1 billion in 2010, Lanxess shown a remarkable growth which results in net income, estimated at 516 million euros, up to 36% a year. The BNA should earn 1.75 EUR to 6.31 EUR per share.
Technically, the stock Lanxess has followed a sharp increase for two months, allowing it to regain its level of July 2011 to 57/58 EUR. The short-term resistance contact of 58.5 EUR marked a slowing trend, but the daily moving averages orientation highly bullish leaves no doubt to the continuation of this positive trend.
A buying strategy may be engaged in short-term resistance crossing at 58.5 EUR with an initial target to 62 EUR on long-term resistance. A stop loss is placed under the 20-days moving average.