MERSEN ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 22.85 EUR in weekly data.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Its low valuation, with P/E ratio at 9.08 and 7.95 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● 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.
Weaknesses
● The company's earnings releases usually do not meet expectations.
● Below the resistance at 29.75 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
