Publicis Groupe : Good timing to go long again

02/11/2019 | 03:01am EDT

long trade Target price hit

Entry price : 47.48€ | Target : 50.6€ | Stop-loss : 45.6€ | Potential : 6.57%

The recent downward movement has sent Publicis Groupe shares back to attractive levels situated around 46.84 EUR. This zone could put an end to the downward movement and offers a good timing for new long positions. Investors have an opportunity to buy the stock and target the € 50.6.

Chart PUBLICIS GROUPE

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

• Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 46.84 support.
• The company returns high margins, thereby supporting business profitability.
• The company is in a robust financial situation considering its net cash and margin position.
• The company's attractive earnings multiples are brought to light by a P/E ratio at 10.45 for the current year.
• The company is one of the best yield companies with high dividend expectations.
• The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

Weaknesses

• According to forecast, a sluggish sales growth is expected for the next fiscal years.
• The company's earnings releases usually do not meet expectations.
• The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
• For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
• For the past seven days, analysts have been lowering their EPS expectations for the company.
• The underlying tendency is negative on the weekly chart below the resistance at 54.36 EUR

Anaïs Lozach

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