Shares in Lanxess show a deteriorated chart pattern with the risk of a trend reversal. A phase of declining share prices seems to establish itself. Investors should open a short trade and target the € 61.81.
The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 61.51 EUR
The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
As estimated by analysts, this group is among those businesses with the lowest growth prospects.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The group usually releases earnings worse than estimated.
With a 2017 P/E ratio at 27.86 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
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