Pursuant to the correction that has taken place in recent weeks with respect to the shares in Plastic Omnium, further downside risk now appears limited by close and important technical support levels at 31.57 EUR. Investors have an opportunity to buy the stock and target the € 35.9.
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.
The share is getting closer to its long-term support in weekly data, at EUR 31.8, which offers good timing for buyers.
Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 31.57 support.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
The stock, which is currently worth 2018 to 0.71 times its sales, is clearly overvalued in comparison with peers.
With a P/E ratio at 10.56 for the current year and 9.29 for next year, earnings multiples are highly attractive compared with competitors.
Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
Over the last twelve months, the sales forecast has been frequently revised upwards.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
The technical configuration over the long term remains negative on the weekly chart below the resistance level at 36.18 EUR
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