AKWEL : A trend reversal can be anticipated

02/05/2019 | 05:16am EST

long trade Stop-loss triggered

Entry price : 16.7€ | Target : 21€ | Stop-loss : 14.5€ | Potential : 25.75%

The recent downside mouvement appears to lose momentum which could allow AKWEL shares to regain a positive medium term outlook. Investors have an opportunity to buy the stock and target the € 21.

Chart AKWEL

Duration : Auto. 2 months 3 months 6 months 9 months 1 year 2 years 5 years 10 years Max. Period : Day Week

Full-screen chart

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• In a short-term perspective, the company has interesting fundamentals.

Strengths

• The share is getting closer to its long-term support in weekly data, at EUR 14.7, which offers good timing for buyers.
• Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
• The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.43 for the 2018 fiscal year.
• Its low valuation, with P/E ratio at 5.9 and 5.18 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
• The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Weaknesses

• For the past year, analysts have significantly revised downwards their profit estimates.
• The underlying tendency is negative on the weekly chart below the resistance at 21.7 EUR

Jordan Dufee

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